Struggling Dominion Agrees Sale of Ekati Mine
December 08, 20
(IDEX Online) - Canada's Dominion Diamond Mines has agreed to sell its Ekati mine to investment managers following the collapse of a rescue deal in October.
The troubled miner filed for insolvency in April and had been seeking a buyer since then for the deposit in Northwest Territories.
It's being acquired by DDJ Capital Management and Brigade Capital Management, representing holders of Dominion's second lien notes.
The two investment managers will take on Dominion's $70m debts and acquire almost all its assets except for the nearby Diavik mine, which is owned jointly with Rio Tinto. The deal is subject to court approval.
Dominion, the world's third biggest supplier of diamonds by carat, had been negotiating a sale to subsidiaries of its parent group, The Washington Companies. But it fell through because of an impasse with insurers over eventual reclamation expenses at the site.
The mine (pictured) has been closed since the global pandemic hit in March, but last month Dominion announced that 60 furloughed employees were being recalled in the hope that operations would resume soon.