Dominion Diamond to Pay $67 Million for Fipke’s Ekati Stake

Reuters reported that Canadian diamond veteran Charles “Chuck” Fipke, one of the founders of the Ekati diamond mine, is selling his remaining stake in the mine to Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) for $67 million.

As quoted in the market news:

Toronto-based Dominion, which bought out mining giant BHP Billiton Plc’s stake in Ekati last year, said the sale ends Fipke’s financial involvement in the mine.

Through his company C. Fipke Holdings Ltd, Fipke holds a 10 percent stake in Ekati’s core zone, which contains the current operating mine. He also owns a 10 percent stake in the so-called buffer zone, an adjacent exploration area containing diamond-bearing kimberlite pipes.

Fipke, who has switched diamond prospecting for breeding and racing thoroughbreds, will sell his core zone stake for $50 million and his holding in the buffer zone for $17 million, Dominion said. Both amounts are subject to possible adjustments for interest and joint venture contributions.

Click here to read the full Reuters report.