Dominion Diamond Mines ULC said yesterday that it reached a deal to sell its Ekati mine in Canada’s Northwest Territories to holders of its second lien notes, eight months after seeking bankruptcy protection amid a worldwide upheaval in the diamond industry, Reuters reported. Closely held Dominion, owned by the Washington Companies, filed for creditor protection in April, citing disruption to the global diamond trade caused by the novel coronavirus pandemic. Under the deal, which is subject to court approval, an entity controlled by DDJ Capital Management and Brigade Capital Management will acquire nearly all of Dominion’s assets in exchange for the assumption of $70 million in debt, Dominion said in a statement. The deal does not include Dominion’s 40 percent stake in global miner Rio Tinto’s nearby Diavik mine, which is the subject of a separate dispute between the companies. Calgary-based Dominion said the bidders would provide $70 million in working capital, with operations at the Ekati mine restarting no later than Jan. 29, 2021.
