Following posting the surety bonds, the company has been returned letters of credit of around CDN$82.6 million previously posted as security. Letters of credit worth around CDN$42.7 million will be with the GNWT as security for reclamation and related activities at the Ekati Diamond Mine pending completion of further reviews by the government.
The surety bonds have been issued by a consortium of insurance companies led by Zurich Insurance Company Ltd and including ACE INA Insurance and AVIVA Insurance Company of Canada. Rothschild advised DDC on the transaction. The current annual average cost of the bonds is 1.3 percent.
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