The company acquired the mine from BHP Billiton for US$500 million. An additional US$U53 million payment was made for purchase price adjustments.
As reported by Jeweller earlier this year, there was uncertainty as to whether the deal would be finalised after C. Fipke Holdings (Fipco), which holds a 10 per cent interest in the mine, commenced legal action that aimed to prevent the deal from going ahead.
However, Dominion has since announced that Fipco has discontinued its court action, allowing it to proceed with the acquisition.
In addition to the mine, the deal also included associated diamond sorting and sales facilities located northwest of Ekati at Yellowknife (Canada) and Antwerp (Belgium) as well as an area next to the mine with additional kimberlite pipes.
The transaction follows Dominion’s sale of the Harry Winston diamond jewellery and timepiece division to Swatch Group – an indication that the company has transformed from a high-end jewellery retailer with diamond mining interests into a major diamond mining business.
Ekati is Canada's first surface and underground diamond mine.
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