Dominion Diamond parent company makes sole bid for Ekati assets worth US$126M

Dominion's stake in Diavik was left out of the deal.

Dominion Diamond Mines has accepted a bid for its Ekati assets from two affiliates of its parent company, the Washington Companies.

The bid is worth US$126 million (about CAD$166 million) plus another US$20 million to the suppliers. This was the sale price previously expected.

There were no other bids for the mine’s assets.

According to a news release, Dominion’s 40 per cent stake in Diavik Diamond Mine was left out of the deal.

The bid must still be approved by Alberta’s superior court. The Washington Companies must also enter into agreements with parties holding surety bonds for Ekati mine, including the Government of the Northwest Territories.

“Dominion is working to return to full operations at Ekati, pending the completion of the transaction, a successful recovery of global diamond sales and the Company’s ability to maintain a safe and healthy work environment for its employees and the communities in the Northwest Territories,” reads the release.

The deal is expected to close by Nov. 7, if all conditions are met.

Dominion filed for bankruptcy protection earlier this year, saying the COVID-19 pandemic made it difficult to get its diamonds to market. However, neither of the NWT’s other two diamond mines had to file for protection despite the pandemic.

About the Author

Francis Tessier-Burns
Francis was a reporter with CKLB from January 2019 to March 2023. In his time with CKLB, he had the immense pleasure and honour of learning about northern Indigenous cultures.