Regulatory approval received for Ekati sale

by eyetee | April 1, 2013 2:46 pm

SB_Ekati_mine_640px — Dominion Diamond Corp.’s $500-million deal for the purchase of the Ekati Diamond Mine from BHP Billiton is expected to close around April 10, now that regulatory approval has been received.

The federal and Northwest Territories governments have approved the sale of the Ekati Diamond Mine to Dominion Diamond Corp., the company says.

The $500-million deal for BHP Billiton’s 80 per cent stake also includes the associated diamond sorting and sales facilities in Yellowknife, Canada, and Antwerp.

The sale is expected to close on or about April 10.

News of regulatory approval comes about a month after Chuck Fipke, the man who discovered what would later become Ekati, dropped a lawsuit against Harry Winston (now Dominion Diamond Corp.), BHP, and their affiliates, as well as Stewart Blusson and Archon Minerals Ltd.

The claim alleged the offers made by BHP to C. Fipke Holdings Ltd., did not comply with its pre-emptive rights under the joint venture agreements for the Ekati mine, and that Harry Winston was complicit in this alleged non-compliance. Fipke also alleged Harry Winston’s debt financing arrangements for the acquisition had interfered with its own ability to arrange financing.

Blusson co-discovered Ekati with Fipke. Each holds a 10 per cent interest in the mine.

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