The man credited for discovering Canada’s first diamond mine is selling his interest for $67 million.
Dominion Diamond Corp., says it is paying $50 million US to FipkeCo for 10 per cent interest in Ekati Diamond Mine’s core zone and $17 million for 10 per cent interest in the buffer zone.
“Although the sale by Chuck Fipke of his interest in the Ekati project ends his financial involvement with Canada’s first diamond mine, his contribution to its discovery and success goes well beyond that,” said Robert A. Gannicott, Dominion’s chair and chief executive officer (CEO).
“The history of Canadian mining is full of stories of accidents of fate leading to discoveries, but the discovery of diamonds in the Slave Geological Province is a story of years of dedicated technical work led by a focused technical expert with unwavering belief in the outcome.”
The Ekati mine property 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 with both development and exploration potential.
Dominion currently holds an 80 per cent participating interest in the core zone, with both FipkeCo and Stewart Blusson each holding 10 per cent participating interest. Dominion holds a 58.8 per cent participating interest in the buffer zone, with FipkeCo holding a 10 per cent participating interest and Archon Minerals Ltd., holding a 31.2 per cent participating interest.
If Archon exercises its right in respect of FipkeCo’s buffer zone interest, Dominion says it would acquire a 6.53 per cent participating interest from FipkeCo, rather than 10 per cent.
