Dominion Diamond Corp launches formal sale procedure

Dominion Diamond Corp launches formal sale procedure

Canada’s largest diamond producer Dominion Diamond Corp (TSX:DDC) has launched a formal evaluation process which will prelude the potential sale of the company.

Dominion was subject of a recent US$1.1 billion unsolicited takeover bid by Montana-based Washington Companies, which was swiftly rejected by the Canadian mining outfit.

However, Dominion’s board has now formed a strategic committee to explore and evaluate a range of potential divestment routes.

Chairsperson Jim Gowans said: “While the board of directors remains confident in the company’s long-term strategic plan and the opportunity it provides to enhance value for all shareholders, we are open to exploring all strategic alternatives that are in the best interests of the company and its stakeholders.”

Recent reports have also claimed that fellow Canadian diamond miner Stornoway Diamond Corp has held merger talks with Dominion.

Dominion’s flagship assets are the Diavik and Ekati diamond mines, located in Canada’s Northwest Territories.