Canadian diamond legend Fipke sells remaining stakes in Ekati mine

Archon Minerals

09/07/2014 17:30

July 9 (Reuters) - Charles "Chuck" Fipke, one of the 
founders of Canada's first diamond mine, Ekati, is selling his 
remaining stakes in the Arctic mine for $67 million, purchaser 
Dominion Diamond Corp  DDC.TO  said on Wednesday. 
    Fipke, along with his partner geologist Stewart Blusson, 
found evidence of diamond-bearing rock in Canada's North West 
Territories in the early 1990s, sparking a staking rush and the 
eventual establishment of Canada's first diamond mine in 1998. 
    Toronto-based Dominion, which bought out mining giant BHP 
Billiton Plc's  BLT.L  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. 
    Dominion currently owns an 80 percent stake in Ekati's core 
zone, with Fipke's old partner Blusson owning 10 percent. In the 
buffer zone, Dominion owns 58.8 percent and Archon Minerals Ltd 
 ACS.V , a company owned by Blusson, owns 31.2 percent. 
    If Blusson and Archon were to exercise their rights of first 
refusal that exist under the joint venture agreements, the 
stakes Dominion would purchase from Fipke would reduce slightly. 
    Neither Fipke nor Blusson could immediately be reached for 
comment. 
    The transactions are expected to close by September. 
 
 (Reporting by Nicole Mordant in Vancouver; Editing by David 
Gregorio) 
 ((nicole.mordant@thomsonreuters.com)(+1-604-664-7315)(Reuters 
Messaging: nicole.mordant.thomsonreuters.com@reuters.net)) 
 
Keywords: DIAMONDS DOMINION DIAMOND/FIPKE