Dominion Diamond sees encouraging acquisition prospects in Canada

Wed Jul 6, 2016 6:01pm EDT
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By Nicole Mordant

(Reuters) - Dominion Diamond Corp DDC.TO (DDC.N: Quote), Canada's biggest publicly traded diamond miner, is keeping an eye out for acquisitions in Canada where some prospects are "very encouraging," its chief executive said on Wednesday.

Dominion, which owns stakes in two of Canada's biggest diamond mines, Ekati and Diavik, is looking for a new chief financial officer who has been involved in a lot of mining mergers and acquisitions, CEO Brendan Bell said.

Dominion said earlier on Wednesday that Chief Financial Officer Ron Cameron would step down on July 15 and Vice President Group Controller Cara Allaway would take over as interim CFO.

"We think there are some very encouraging prospects on the horizon potentially," Bell said in an interview.

"We think Dominion Diamonds, the largest publicly traded Canadian diamond player, is the logical acquirer," he said.

Dominion's main focus remains on developing its core internal diamond projects in Canada's Northwest Territories and it was "not desperate to rush in and overpay", Bell said.

Dominion was open to purchasing either a project that it would develop into a mine, or a producing mine, he said.

Asked if Dominion would be interested in De Beers' Snap Lake mine, also located in the Northwest Territories, Bell said he was not aware that it was for sale.   Continued...