Dominion Diamond Increases Interest in Ekati Diamond Mine

Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) has completed its previously announced acquisition of C. Fipke Holdings Ltd.’s interest in the Ekati diamond mine. The company acquired an additional 8.889-percent participating interest in the mine’s core zone and a 6.53-percent participating interest in its buffer zone.

According to the press release:

The Company acquired an additional 8.889% participating interest in the Core Zone and an additional 6.53% participating interest in the Buffer Zone. The base purchase price for the acquired Core Zone interest was US$42.2 million, plus purchase price adjustments of US$13.2 million for a total amount payable of US$55.4 million. The purchase price adjustments were paid in cash at closing, and the base purchase price was satisfied by a promissory note payable in installments over 31 months. The Company has the right, but not the obligation, to satisfy one or more installments due under the promissory note in common shares of the Company. The base purchase price for the acquired Buffer Zone interest was US$11.11 million plus purchase price adjustments of US$3.24 million, for a total amount paid in cash at closing of US$14.35 million.

Click here to read the Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) press release.