Dominion Diamond Corporation raises stake in Ekati Diamond Mine

Dominion Diamond Corporation has reportedly completed the previously announced acquisition of the interests of C. Fipke Holdings Ltd. ("FipkeCo") in the Ekati Diamond Mine, reports say.

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, adds report.

Each of Dr. Stewart Blusson and Archon Minerals Limited ("Archon") 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, the company acquired an additional 8.889 per cent participating interest in the Core Zone and an additional 6.53 per cent participating interest in the Buffer Zone. The base purchase price for the acquired Core Zone interest was US$42.2 million, plus purchase price adjustments of US$13.2 million for a total amount payable of US$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 installments over 31 months. The Company has the right, but not the obligation, to satisfy one or more installments due under the promissory note in common shares of the Company. The base purchase price for the acquired Buffer Zone interest was US$11.11 million plus purchase price adjustments of US$3.24 million, for a total amount paid in cash at closing of US$14.35 million. After giving effect to the transactions, the Company now holds an 88.889 per cent interest in the Core Zone and a 65.3 per cent interest in the Buffer Zone.