Dominion's Woes Continue: Ekati Sale is Off

Mining and Exploration
10/10/2020 08:57

CBC news reports that negotiations around the US$126 million sale of a number of Dominion's assets, including the Ekati mine, to affiliates of owner Washington Companies have reached an "impasse" with no chance to reach an agreement before the deadline of Oct 14. According to a press release, the deal collapsed as the potential buyers were unable to secure reclamation surety bonds, serving as an insurance against eventual reclamation expenses at the Ekati mine, if financial obligations in that regard can't be met. The failed negotiations raise questions on the miner's position in the Diavik mine, of which it is a 40% owner. In June, Rio Tinto - owning a 60% stake in Diavik - said it was not pursuing Dominion's stake in the mine.