Dominion Diamond‘s sale of Canada’s first diamond mine, Ekati, to Arctic Canadian Diamond Company has been completed.
Full operations at the site, which had been placed on care and maintenance at the beginning of the pandemic last March, resumed on Jan. 20 after a 10-week restart that began in November. A “full recall” of employees is expected to be complete by Feb. 25.
Arctic Canadian is owned by DDJ Capital Management, Brigade Capital Management, LP and Western Asset Management Company, LLC. In a sale that was approved in December, the company acquired the asset in return for assuming US$70 million of Dominion’s outstanding indebtedness under its existing revolving credit agreement, as well as the reclamation obligations for Ekati.
Arctic will also receive a new US$85-million fully funded working capital facility, ranking behind the first lien lenders.
Dominion Diamond, which filed for creditor protection last April, retains its 40% stake in the Diavik diamond mine in the Northwest Territories, operated by 60% partner Rio Tinto.
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