Dominion Expands Holding In Ekati Diamond Mine

(IDEX Online News) – Dominion Diamond Corp has completed the previously announced acquisition of the interests of C. Fipke Holdings Ltd. in the Ekati Diamond Mine.

Each of Dr. Stewart Blusson and Archon Minerals Limited exercised their rights of first refusal to acquire their proportionate share of the interests in the Core Zone and Buffer Zone, respectively, being sold by FipkeCo. As a consequence, Dominion acquired an additional 8.889 percent participating interest in the Core Zone and an additional 6.53 percent participating interest in the Buffer Zone.

The base purchase price for the acquired Core Zone interest was $42.2 million, plus purchase price adjustments of $13.2 million for a total amount payable of $55.4 million. The purchase price adjustments were paid in cash at closing, and the base purchase price was satisfied by a promissory note payable in instalments over 31 months. 

The company has the right, but not the obligation, to satisfy one or more instalments due under the promissory note in common shares of the company. The base purchase price for the acquired Buffer Zone interest was $11.11 million plus purchase price adjustments of $3.24 million, for a total amount paid in cash at closing of $14.35 million.

The firm now holds an 88.889 percent interest in the Core Zone and a 65.3 percent interest in the Buffer Zone.

The Ekati Diamond Mine consists of the Core Zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential, including the Jay and Lynx pipes.