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NORTHWEST TERRITORIES
The court action stalling the proposed purchase of the Ekati diamond mine was discontinued after settlement agreements were struck between BHP Billiton and its joint venture partners.

The proposed $500-million US purchase agreement between BHP Billiton Ltd. and Harry Winston Diamond Corp. is expected to reach completion within the first half of 2013. - NNSL file photo

Harry Winston Diamond Corp. announced Feb. 4 the court action stalling its purchase of BHP's 80 per cent stake in the mine, located approximately 310 km northeast of Yellowknife, was discontinued.

The action had been filed by C. Fipke Holdings Ltd., one of the Ekati joint venture partners, on Jan. 16 in the Ontario Superior Court of Justice against BHP Billiton Canada Inc., Harry Winston Diamond Corp., geologist Stewart Blusson, Archon Minerals Ltd., and associated companies.

Fipke Holdings, owned by geologist Chuck Fipke, alleged that BHP did not comply with Fipke's pre-emptive rights under the joint venture agreement and requested the court prohibit the sale until Fipke Holdings was provided with "revised offers."

The court action was discontinued after BHP entered into a settlement agreement with Fipke, Blusson, and Archon Minerals.

All joint venture partners have now agreed to waive their rights of first refusal in respect of the sale, according to the release issued by Harry Winston.

Deana Twissell, superintendent of community and external affairs for BHP Billiton, said terms of the settlement are confidential and could not be released.

She said the sale transaction is on track for completion in the first half of this calendar year, subject to closing conditions, including regulatory approvals.

The $500-million proposed purchase agreement includes BHP's 80 per cent interest in Ekati, operations at the mine, as well as diamond sorting and sales facilities in Yellowknife and Antwerp, Belgium.

Blusson and Fipke co-discovered Ekati and each own a 10 per cent interest in the mine.

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