Dominion Diamond Corporation, formerly Harry Winston Diamond Corporation, completed its planned acquisition of the Ekati diamond mine, which included associated diamond sorting and sales facilities in Yellowknife, Canada and Antwerp. Ekati consists of a core zone, which includes the current operating mine and other permitted kimberlite pipes, as well as a buffer zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. Dominion Diamond purchased the assets from BHP Billiton for $553 million and it officially marks the end of BHP's diamond investment.
Gannicott, the chairman and CEO of Dominion Diamond, said, "We are very
pleased to be able to bring our northern mining background and diamond
marketing skills to bear on a project that is well constructed, well
operated and well-endowed with resources that represent a promising
future for shareholders, employees and northern stakeholders."
held cash of approximately $65 million on the closing date and two
sales cycles (10 weeks) of diamond inventory either in the process of
being sorted and valued or available for sale. This inventory will be
valued against Dominion Diamond's rough diamond sales assortments.
Dominion Diamond also provided letters of credit to the Canada of
approximately $127 million in support of reclamation obligations for the
core zone. The purchase price and the letters of credit were satisfied
from or secured by cash on hand.
Dominion Diamond expects to release a detailed mine plan for Ekati on or before April 24.