Dominion Diamond Mines ULC has signed a letter of intent with an affiliate of The Washington Companies where an entity to be managed by Washington would acquire substantially all of Dominion’s assets for approximately US$126 million in cash and the assumption of substantially all of Dominion’s operating liabilities. Washington has also agreed to provide Dominion up to US$60 million in short-term debtor-in-possession financing.

In early April, Dominion filed for insolvency protection under the Companies’ Creditors Arrangement Act (CCAA) and obtained an order from the Alberta Court of Queen’s Bench, granting Dominion protection under the CCAA. According to a press release, Dominion believes the sale will:

• Ensure Dominion will be able to deliver on its plans to safely resume mining operations at the Ekati Diamond Mine as COVID-19 subsides and diamond markets reopen.
• Provide assurance to Dominion’s employees, suppliers, and surrounding communities that Ekati will continue to operate into the future.
• Allow Dominion to pay or meet obligations owed to employees, including pension obligations, and to remain a significant employer and corporate citizen in the Northwest Territories.
• Provide assurance to the Government of the Northwest Territories that Dominion will continue to comply with all appropriate health, safety, and environmental standards at Ekati and provide economic support to the communities in the NWT.