Dominion Diamonds said it had stopped negotiations around the proposed sale of certain Dominion assets, including the Ekati mine.
In a press release the owner of the Ekati diamond mine in the Northwest Territories says the proposed C$166 million (US$126 million) sale of the mine to affiliates of the Washington Companies is off.Dominion said it has been advised that surety bond users and the purchaser reached an "impasse in negotiations" with no reasonable chance of reaching an agreement that is satisfactory to all parties before the deal was set to go before the courts for approval on Oct. 14.
The failed negotiations raise questions on the miner's position in the Diavik mine, of which it is a 40% owner. An affidavit filed in the creditor protection case shows Dominion owes more than C$41 million for its share of the security for that mine. In June, Rio Tinto - owning a 60% stake in Diavik - said it was not pursuing Dominion's stake in the mine.
Alex Shishlo для Rough&Polished
