21 Aug 2019
DiamondWorld Directory
Home |
News
Home
Dominion Diamond gains full ownership interest in Ekati Mine
Enters into agreement with Archon Minerals Limited
By: Diamond World News Service
|
Jun 8 2017 8:59AM
|
Reference: 15274  

DecreaseIncrease
Dominion Diamond Corporation has entered into an agreement with Archon Minerals Limited, to convert Archon’s participating joint venture interest in the Buffer Zone Joint Venture at the Ekati Diamond Mine in Canada’s Northwest Territories to a royalty equal to 2.3 percent of all future gross revenue from diamonds produced from the Buffer Zone.

As a result of this transaction, the company’s ownership interest in the Buffer Zone has increased to 100 percent. The company maintains an ownership interest of 88.9 percent in the Core Zone Joint Venture at the Ekati Diamond Mine.

Commenting on the transaction, Mr. Jim Gowans, Chairman of the Board of Directors of Dominion said, “We are delighted to have reached this mutually beneficial agreement with Archon. For both parties, the transaction provides ownership and funding certainty for the large scale Jay project, which is currently in the final stages of permitting. It also provides significantly more exposure for Dominion’s shareholders to further discoveries on this highly prospective land package.”

On July 6, 2016, Dominion issued the results of a feasibility study on the Jay project, indicating positive project economics with a post-tax net present value of $398 million and an internal rate of return of 15.6 percent. Commercial mining activities at the Lynx kimberlite pipe in the Buffer Zone commenced on April 1, 2017; the Lynx pipe is forecast to represent approximately 5 percent of tonnes processed and carats recovered at the Ekati Diamond Mine for the fiscal year ending January 31, 2018.

The Buffer Zone contains 106 mining leases covering 89,184 hectares, and is contiguous with the Core Zone Joint Venture at the Ekati Diamond Mine. Of the 150 kimberlite pipes discovered to date at the Ekati Diamond Mine, 38 are in the Buffer Zone. The company plans to spend approximately CAD$11 million on exploration in the Lac de Gras region for the fiscal year ending January 31, 2018.

Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Advertisement
M. Suresh234x60
Search News by City
Advertisement
Kosher 23460
Advertisement
Kosher 23460
Recent Issue
2019
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
Spotted: Who Wore What (August 2018)
Pictures: 4
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 16580
GJEPC Chairman Interview
Views: 15366
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 22224
Promo for IJ Awards 2012 at NDTV Profit
Views: 35068
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 38470
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 12759
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 36506
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 34471
Advertisement
KGK_Antwepr
Advertisement
M.Tarun
Member of:
Supporter of: