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Winter 2017 Features:

Infrastructure Developments will Benefit the North, Canada

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The News is 'GOLDEN'

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Freezing Trees,
Finding Answers

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The Washington
Companies to Acquire Dominion

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PDAC 2018 Awards

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Norway to be Home
to World's Tallest
Timber Building


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2018 Buyers' Guide & Product Source Directory

 

Dominion Diamond Corporation, which operates and owns controlling interest in the Ekati Diamond Mine and is 40% owner of the Diavik Diamond Mine in the Northwest Territories, has been sold to The Washington Companies. The deal closed on Nov. 1, 2017.

Washington is a group of privately held North American mining, industrial and transportation businesses founded by industrialist and entrepreneur Dennis R. Washington.

Under the deal, Washington paid US$14.25 per Dominion share in cash – a total equity value of approximately US$1.2 billion. The transaction marks the result of Dominion’s review of strategic alternatives announced on March 27, 2017.

“Dominion Diamond has an excellent collection of mining assets and a talented and experienced management team and workforce,” said Lawrence R. Simkins, President of Washington. “We are excited to work with their team to extend the mine life of the Ekati mine and continue partnering with Rio Tinto in the operation of the Diavik mine, while maintaining long-term employment for Dominion employees. The Washington Companies has a long track record of building businesses throughout North America, significant experience in mining as well as operating its investments in Canada, and a decades-long investment horizon. We share a commitment to providing long-term benefits to all Dominion stakeholders and to the Northwest Territories and its local communities.”

“The Washington offer delivers compelling and immediate value to Dominion shareholders at an attractive premium that recognizes the intrinsic value of Dominion and provides shareholders certainty through an all-cash offer,” said Jim Gowans, Chair of the Board of Dominion Diamond Corporation. “This offer is the result of a robust strategic review process and the board unanimously agrees that this offer represents the best option available to Dominion shareholders, and recommends that shareholders vote in favour of this transaction.”

Added Gowans, “Dominion also believes this transaction is an excellent outcome for the company’s stakeholders, including employees, community members and the Northwest Territories. The transaction allows the operation to take the next steps in mine development and ensures mining and its associated benefits continue in the North for decades to come.”
“The Washington Companies’ commitments to safety, operational excellence, innovation and world-class management teams position us favourably for long-term success at the Ekati and Diavik mines for the benefit of all Dominion Diamond stakeholders,” added Dennis R. Washington. “I look forward to the next chapter of continuing to build and support successful, safe business operations in the Northwest Territories.”

Benefits to Canada
Washington will be a responsible, long-term operator and builder of Dominion’s world-class assets, and plans to extend the mine life of Ekati for decades, consistent with the current development plan. As part of this acquisition, Washington plans to:

  • Operate Dominion as a standalone business as Washington does with its other successful operating companies;
  • Appoint a new CEO based in Canada to the Dominion management team;
  • Keep Dominion’s headquarters in Canada and maintain a significantly Canadian management team;
  • Deploy capital to develop both the Jay and Fox Deep projects;
  • Make new investments in a reinvigorated greenfield exploration program;
  • Maintain a high level of environmental stewardship through all phases of its operations;
  • Provide ongoing and long-term employment for skilled, high-paying jobs at Dominion;
  • Maintain focus on the recruitment, training and employment of Indigenous people;
  • Honour the existing commitments to the Indigenous communities to ensure their interests are protected;
  • Continue with scholarship programs and heritage funds to assist with social, recreational, and community development program;
  • Provide ongoing support for local suppliers and contractors, including Indigenous businesses; and
  • Continue to promote Dominion’s CanadaMark brand for its ethically sourced and premium Canadian diamonds.

NWT Premier’s statement on Washington Companies acquisition of Dominion
Soon after it was announced Washington Companies would acquire Dominion Diamond, Government of the Northwest Territories Premier Bob McLeod issued a statement saying: “Responsible resource development is key to the social and economic future of the NWT. The Government of the Northwest Territories believes that it must be done with a strong view to environmental sustainability and northerners must share in the prosperity it brings.

“I’m encouraged by the public commitments made by Washington to important matters such as ongoing investment in exploration and jobs and benefits for northerners, particularly Indigenous communities and governments.

“Mining currently contributes 20% of our direct GDP and provides jobs to over one out of every 10 people working in our territory. Since 1996, the diamond mines have spent $19 billion on Northwest Territories businesses, including $5 billion on Aboriginal owned businesses. We expect that the Washington Companies will be a significant contributor to these outcomes going forward. Minister Wally Schumann and I look forward to meeting with senior officials from the company in the near future to discuss advancing our mutual interests.”

(Source: NWT & Nunavut Chamber of Mines’ Northern Mining News)


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