Canadian mining company Dominion Diamond Mines ULC has signed a deal to sell its Ekati diamond mine in Northwest Territories, Canada to DDJ Capital Management and Brigade Capital Management.
Located approximately 300km north-east of Yellowknife, near Lac de Gras, the Ekati mine is said to be Canada’s first surface and underground diamond mine.
Upon suspension of mining operations, the Ekati mine was placed on care and maintenance earlier this year, due to the Covid-19 pandemic, Mining.com reported.
However, operations at the mine are planned to resume no later than 29 January 2021.
As per the terms of the deal, an entity controlled by DDJ Capital Management and Brigade Capital Management will acquire a majority of Dominion’s assets.
The transaction, which is subject to court approval, excludes Dominion’s 40% stake in the Diavik mine.
Proceeds from the sale will be used to fund the certain assumed liabilities, operations at the Ekati Mine, and for general working capital purposes, Dominion Diamond Mines ULC said.
The Ekati mine, including the Misery underground and the Jay project, has a current mine life of 2034.
To extend the operational life of the Ekati mine to 2042, certain exploration and project evaluation activities are being undertaken.
Dominion Diamond Mines ULC is a one of the world’s largest producers and suppliers of premium rough diamond assortments to the global market.
In addition to the Ekati and Diavik Diamond Mines, the company holds a controlling interest in the Lac de Gras Diamond Project, which is also located in the Northwest Territories of Canada.
In 2017, Dominion Diamond was acquired The Washington Companies.
