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Ekati mine officially sold to Arctic Canadian Diamond Company

Dominion Diamond Mines has completed the sale of the Ekati Mine to Arctic Canadian Diamond Company Ltd. However, it appears that the sale becoming official won’t have an impact on those who are looking to return to work.

In a statement released Thursday, officials state a full recall of employees back to work is still in line to happen no later than February 25th.

Dominion initiated a 10-week phased restart in November after shutting down the mine in March due to the threat of COVID-19. They returned to full operations on January 20th.

“We are excited to have our employees back at work and to have Ekati in full production again,” said Interim Dominion President Rory Moore.

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Arctic has acquired “substantially all” of Dominion’s assets including assuming US$70 million of Dominion’s outstanding debt. Dominion’s interest in the Diavik Diamond Mine is excluded from the sale.

“This transaction significantly reduces our debt obligations, and provides sufficient liquidity to fund our operations, invest in future growth and allow Dominion to emerge with a materially stronger balance sheet,” said Dominion CFO Kristal Kaye.

In addition, Arctic will receive US$85 million fully funded working capital for operations at the Ekati mine as part of the sale.

Dominion initially announced the sale of Ekati to a group of creditors in early December.

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