TORONTO (miningweekly.com) – Canadian miner Dominion Diamond on Thursday said it had completed its acquisition from global diversified miner BHP Billiton of the Ekati diamond mine, and associated diamond sorting and sales facilities in Yellowknife, Canada, and Antwerp, Belgium.
Dominion Diamond paid $500-million along with a purchase price adjustment of $53-million for BHP’s interest in the Ekati diamond mine, which was Canada’s first diamond mine.
BHP owned an 80% interest in the Core Zone joint venture (JV), comprising existing operations, and a 58.8% interest in the Buffer Zone JV, which focused primarily on exploration targets.
The deal was given regulatory approval in early April.
"We are very pleased to be able to bring our northern mining background, and diamond marketing skills, to bear on a project that is well constructed, well operated and well endowed with resources that represent a promising future for shareholders, employees and northern stakeholders,” Dominion chairperson and CEO Robert Gannicott said.
The Ekati mine consists of the Core zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer zone, an adjacent area hosting kimberlite pipes having both development and exploration potential.
Dominion at the end of March completed the $750-million sale of its luxury brand diamond jewellery and timepiece division to Swiss watchmaker The Swatch Group and changed its name from Harry Winston Diamond to Dominion Diamond. The transaction would allow the company to focus exclusively on mining diamonds.
Dominion also has a 40% interest in the Diavik diamond mine, which is also located nearby, and Gannicott in a recent telephone conference said the company might want to extend its investment.
The company’s TSX-listed shares traded at C$16.90 apiece on Thursday morning.