Canadian Court Approves Ekati Diamond Mine Sale

Canada-based diamond producer Dominion Diamond Mines ULC has received approval from the Alberta Court of Queen’s Bench for the sale of the Ekati diamond mine and related assets to DDJ Capital Management, LLC and Brigade Capital Management, LP, its bond holders.

Under the agreement, DDJ and Brigade will acquire substantially all of Dominion’s assets, excluding Dominion’s 40% interest in the joint venture agreement and liabilities relating to the Diavik mine. The purchasers will also assume various liabilities owed to Dominion’s creditors, employees, suppliers and surety bond holders, and will provide $70 million in working capital.

Subject to obtaining all approvals and closing conditions, the transaction is expected to close no later than 1st February, 2021. The company is making all efforts to restart operations at the Ekati mine by 29th January, 2021.

Caption: The Ekati diamond mine in winter.

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