Dominion Completes Sale of Ekati Mine
February 08, 21
(IDEX Online) - The sale of Ekati, Canada's first diamond mine, has been completed.
Troubled owners Dominion, the world's third biggest supplier of diamonds by carat, sold the mine and associated assets to Arctic Canadian Diamond Company.
The new company has been established by DDJ Capital Management and Brigade Capital Management, representing holders of Dominion's second lien notes.
Arctic has assumed $70m of Dominion's outstanding debt and will inject $85m of working capital facility into the mine in Northwest Territories.
Dominion filed for insolvency last April. The sale of Ekati has been approved by the Alberta Court of Queen's Bench. Dominion also jointly owns 40 per cent of the nearby Diavik mine - which is not being sold - with Rio Tinto.
"This transaction significantly reduces our debt obligations, and provides sufficient liquidity to fund our operations, invest in future growth and allow the company to emerge with a materially stronger balance sheet," said Dominion's chief financial officer Kristal Kaye, in a press statement.
Pic shows Ekati mine