Transaction Expected to Close by February 1, 2021; Mine Restart on Track for January 29, 2021
Dominion Diamond Mines secures court approval to sell Ekati Mine. (Credit: Pixabay/Анатолий Стафичук.)
Dominion Diamond Mines has announced that it has received approval from the Alberta Court of Queen’s Bench of the asset purchase agreement among Dominion and its affiliates as sellers and DDJ Capital Management (DDJ) and Brigade Capital Management.
Under the Agreement, an entity to be controlled by DDJ and Brigade (the “Purchaser”) would acquire substantially all of Dominion’s assets, excluding Dominion’s interest in the joint venture agreement and liabilities relating to the Diavik Mine, in consideration for the assumption by the Purchaser of various liabilities owing to Dominion’s creditors, employees, suppliers and surety bond holders, including assuming US$70 million of Dominion’s outstanding indebtedness under its existing revolving credit agreement and the provision of a US$70 million working capital facility ranking behind the first-lien lenders.
Subject to obtaining all required regulatory approvals and satisfying other customary closing conditions, the transaction is expected to close no later than February 1, 2021 (the “Outside Date”). The parties may extend the Outside Date if required governmental approvals have not been obtained by February 1, 2021. The Court has also extended the current stay of proceedings in favour of Dominion to March 1, 2021. The Company is making all efforts to restart operations at the Ekati Mine by January 29, 2021.
As previously announced, on April 22, 2020, Dominion filed for insolvency protection under the Companies’ Creditors Arrangement Act (“CCAA”) and obtained an order from the Court granting Dominion protection under the CCAA pursuant to an order from the Court.
Source: Company Press Release