Dominion Closes Ekati Sale to Arctic

Canada-based miner Dominion Diamond Mines ULC has completed the previously announced sale of the Ekati diamond mine and associated assets to Arctic Canadian Diamond Company Ltd., a company formed and owned by funds and accounts managed by DDJ Capital Management, Brigade Capital Management, LP and Western Asset Management Company, LLC.

The Alberta Court of Queen’s Bench approved the sale pursuant to an order issued on 11th December, 2020.

Arctic, (formerly Dominion Diamond Mines), has acquired all of Dominion’s assets, excluding its interest in the Diavik diamond mine. Arctic has also assumed Dominion’s various liabilities and $70 million of outstanding debt; and will provide the mining firm with $85 million of working capital.

“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 Kristal Kaye, Chief Financial Officer.

Ekati returned to full operations on 20th January, 2021, and the company anticipates that the full recall of employees back to work will be completed by 25th February, 2021.

“We are excited to have our employees back at work and to have Ekati in full production again,” said Rory Moore, Interim President. “We are also very grateful to our new owners for the commitment they have demonstrated to Ekati and its stakeholders. This new partnership will bring fresh perspectives to our operations and be the driving force behind our continued growth.”