Dominion Diamond Corporation to Increase Interest in the Ekati Diamond Mine

 Dominion Diamond Corporation to Increase Interest in the Ekati Diamond Mine  YELLOWKNIFE, NW, July 9, 2014 /CNW/ - Dominion Diamond Corporation (TSX:DDC,  NYSE:DDC) (the "Company") announced today that it has entered into an  agreement with C. Fipke Holdings Ltd. ("FipkeCo") to acquire FipkeCo's 10%  participating interests in the Ekati Diamond Mine at a price equivalent to the  price paid to BHP Billiton in 2013 for its interests.  The Chairman and Chief Executive Officer of Dominion Diamond Corporation,  Robert A. Gannicott, said, "Although the sale by Chuck Fipke of his interest  in the Ekati Project ends his financial involvement with Canada's first  diamond mine, his contribution to its discovery and success goes well beyond  that. The history of Canadian mining is full of stories of accidents of fate  leading to discoveries but the discovery of diamonds in the Slave Geological  Province is a story of years of dedicated technical work led by a focused  technical expert with unwavering belief in the outcome."  The Ekati Mine property consists of the Core Zone, which includes the current  operating mine and other permitted kimberlite pipes, as well as the Buffer  Zone, an adjacent area hosting kimberlite pipes with both development and  exploration potential.  The Company currently holds an 80% participating  interest in the Core Zone, with FipkeCo holding a 10% participating interest  and Dr. Stewart Blusson holding the remaining 10% participating interest.  The  Company holds a 58.8% participating interest in the Buffer Zone, with FipkeCo  holding a 10% participating interest and Archon Minerals Limited ("Archon")  holding a 31.2% participating interest.  FipkeCo will sell its 10% interest in the Core Zone for US$50 million, subject  to adjustments to reflect joint venture contributions and distributions since  June 30, 2012, as well as interest from that date.  The base purchase price  would be payable in instalments over 31 months, and the Company would have the  right, but not the obligation, to satisfy one or more instalments in common  shares of the Company.  FipkeCo will sell its 10% interest in the Buffer Zone for US$17 million,  subject to adjustments to reflect joint venture contributions and  distributions since June 30, 2012, as well as interest from that date.  The  purchase price would be payable in cash on closing.  The joint venture agreements governing each of the Core Zone and the Buffer  Zone contain a right of first refusal in favour of each joint venture party,  which rights are exercisable for 60 days. If Dr. Blusson exercises his right  in respect of FipkeCo's Core Zone interest, the Company would acquire an 8.89%  participating interest from FipkeCo, rather than a 10% interest.  If Archon  exercises its right in respect of FipkeCo's Buffer Zone interest, the Company  would acquire a 6.53% participating interest from FipkeCo, rather than a 10%  interest.  It is anticipated that completion of the transactions would occur in  September, 2014.  Cautionary Statement on Forward-Looking Information This news release contains statements that constitute "forward-looking  statements" and/or "forward-looking information" within the meaning of  Canadian and United States securities laws (the "forward-looking information")  relating to the proposed acquisition of the Ekati Diamond Mine. Such  forward-looking information is subject to important risks, uncertainties and  assumptions, including risks relating to the timing of closing of such  acquisition. The results or events predicted in forward-looking information  may differ materially from actual results or events. As a result, readers are  cautioned not to place undue reliance on forward-looking information, which  speaks only as of the date of this disclosure, and should not rely upon this  information as of any other date. While the Company may elect to, it is under  no obligation and does not undertake to, update or revise any forward-looking  information, whether as a result of new information, further events or  otherwise at any particular time, except as required by law. Additional  information concerning factors that may cause actual results to materially  differ from those in such forward-looking statements is contained in the  Company's filings with Canadian and United States securities regulatory  authorities and can be found at www.sedar.com and www.sec.gov, respectively.  About Dominion Diamond Corporation  Dominion Diamond Corporation is a Canadian diamond mining company with  ownership interests in two major producing diamond mines.  Both mines are  located in the low political risk environment of the Northwest Territories in  Canada.  The Company operates the Ekati Diamond Mine through its 80% ownership as well  as a 58.8% ownership in the surrounding areas containing additional resources,  and also owns 40% of the Diavik Diamond Mine. It supplies rough diamonds to  the global market through its sorting and selling operations in Canada,  Belgium and India and is the world's third largest producer of rough diamonds  by value.  For more information, please visit www.ddcorp.ca    SOURCE  Dominion Diamond Corporation  Mr. Richard Chetwode, Vice President, Corporate Development - +44 (0)  7720  970 762 orrchetwode@ddcorp.ca  Ms. Kelley Stamm, Manager, Investor Relations - (416) 205-4380  orkstamm@ddcorp.ca  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/July2014/09/c7141.html  CO: Dominion Diamond Corporation ST: Northwest Territories NI: MNG  
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