The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Dominion Diamond Corp. Nov. 1 announced that it has closed the deal to sell all of its outstanding shares to The Washington Companies for US$14.25 per share, worth roughly US$1.2 billion.
Founded by billionaire Dennis Washington, The Washington Companies is a group of privately held North American mining industrial and transportation businesses.
"This is an exciting day for Dominion Diamond and The Washington Companies," said Washington President Lawrence Simkins.
"We fully support Dominion's existing strategy and its exceptional employees, and we are confident that Dominion will continue to offer long-term benefits to all of the company's stakeholders."
Dominion, which operates the Ekati diamond mine and 40 percent of the Diavik diamond mine, will operate as a standalone, private company.
"With today's closing, I am excited to join forces with Dominion as well as with our respected partner at the Diavik mine - Rio Tinto. We look forward to owning and operating Dominion for decades to come, with a focus on maintaining safe and prosperous business operations in the Northwest Territories," said Dennis Washington.
Patrick Evans, who recently served as CEO of Kennady Diamonds and Mountain Province Diamonds, is the new CEO for Dominion.
"I will work relentlessly with management and our talented employees to help realize the long-term potential of Dominion's world-class assets, specifically by extending the life of the Ekati Mine, investing to develop the Jay project and reinvigorating our exploration program," said Evans.
"I have long admired Dominion Diamond's deep ties to the Northwest Territories and Nunavut and to Yellowknife in particular, and I look forward to continuing that legacy with the full support and resources of The Washington Companies." Directors with a mix of relevant business and mining expertise have been added to the Dominion board, including Rolin Erickson, president of Montana Resources, a copper and molybdenum mine owned by Washington.
-SHANE LASLEY
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
Reader Comments(0)