Dominion Diamond sues partner in Diavik mine for breach of contract, other allegations – by Sara Minogue (CBC News North – June 16, 2020)

https://www.cbc.ca/news/canada/north/

Dominion Diamond Mines has filed a lawsuit accusing Diavik Diamond Mines (2012) Inc. — its 60 per cent partner in the Diavik diamond mine in the Northwest Territories — of managing the mine to the benefit of its majority owner, Rio Tinto, and to the detriment of Dominion.

The civil lawsuit, filed Tuesday with the Supreme Court of British Columbia (where Dominion is incorporated), claims Diavik Diamond Mines (DDMI) has continued to make cash calls from Dominion “knowing that Dominion has no ability to pay for such cash calls.”

Cash calls are basically requests from Dominion’s partner in the mine to cover its share of operating costs or other obligations.

It also states that Diavik has failed to meet production targets while running significantly over budget, and without regard for the negative economic climate created by the global COVID-19 pandemic.

These and other factors, Dominion claims, have “created a liquidity crisis for Dominion that rendered it insolvent.”

For the rest of this article: https://www.cbc.ca/news/canada/north/dominion-diamond-alleges-breach-of-contract-1.5614916

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