Dominion Diamond Mines provides update on sale process

Dominion Diamond Mines ULC announced on 16 September that the stalking horse bid submitted by Canadian Diamond Holdings, L.P. and CA Canadian Diamond Mines ULC, affiliates of the Washington Companies is the successful bid under the sales process approved by the Court of Queen’s Bench of Alberta on June 19, 2020. No other qualified bids were submitted for the purchase of all or part of Dominion’s assets, as per a report in Manchester Times
The Washington bid contemplates a purchase of substantially all of Dominion’s assets related to the Ekati Diamond Mine. Dominion’s 40% interest in the Diavik Diamond Mine joint venture has been excluded from the sale.
The consideration to be paid by Washington to Dominion includes approximately $126 mn in cash, $20 mn to be made available concerning pre-filing trade suppliers and the assumption of substantially all of Dominion’s other Ekati-related operating liabilities.
The Washington bid is subject to several conditions to closing, including approval by the Court and Washington agreeing with the issuers of the surety bonds currently posted with the Government of the Northwest Territories to provide continued security for the reclamation obligations related to Ekati.
Assuming satisfaction of all conditions to closing, the transaction is expected to close by November 7, 2020. Dominion is working to return to full operations at Ekati, pending the completion of the transaction.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished