Dominion Diamond Corporation Confirms Approval of Share Repurchase Program
July 15 2016 - 4:00PM
Business Wire
Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the
“Company” or “Dominion”) announces that the Toronto Stock Exchange
(“TSX”) has approved the Company's previously announced normal
course issuer bid to purchase for cancellation up to 6,150,010
common shares, representing approximately 10% of the public float
as of July 6, 2016, over a one-year period.
Repurchases under the program may commence on July 20, 2016 and
will terminate not later than July 19, 2017. There were 85,335,979
common shares outstanding as at July 6, 2016. Common shares
repurchased under the program will be cancelled.
Purchases under the program may be made through the facilities
of the TSX, the New York Stock Exchange or alternative trading
platforms in Canada or the United States by means of open market
transactions or by such other means as may be permitted by the TSX
and applicable U.S. securities laws. The price the Company will pay
for any common shares will be the market price at the time of
purchase or such other price as may be permitted by applicable
regulatory requirements. Under TSX rules, daily purchases will be
limited to 55,856 common shares, other than block purchase
exceptions. The actual number of common shares that may be
repurchased under the program and the timing of any such
repurchases will be determined in the discretion of the Company and
will be subject to the limitations imposed by the rules and
regulations of the TSX and applicable U.S. securities laws.
The Company believes that from time to time the underlying value
of its assets is not reflected in the market price of its common
shares, and therefore purchases of the Company’s common shares may
represent the best use of shareholder’s capital. Such purchases are
expected to increase the equity interest of all remaining
shareholders.
Forward-Looking InformationCertain information included
herein that is not current or historical factual information,
including information about the Company’s intention to purchase its
common shares pursuant to a normal course issuer bid constitute
forward-looking information or statements within the meaning of
applicable securities laws. Forward-looking information can
generally be identified by the use of terms such as “may”, “will”,
“should”, “could”, “expect”, “plan”, “anticipate”, “foresee”,
“appears”, “believe”, “estimate”, “predict”, “continue”, “modeled”,
“hope”, “forecast” or other similar expressions concerning matters
that are not historical facts. Forward-looking information is based
on certain factors and assumptions including, among other things,
the current mine plan for each of the Ekati Diamond Mine and Diavik
Diamond Mine; mining, production, construction and exploration
activities at the Company’s mineral properties; the timely receipt
of required regulatory approvals; mining methods; currency exchange
rates; estimates related to the capital expenditures related to
bring the Jay and A-21 pipe into production, required operating and
capitals costs; labour and fuel costs; world and US economic
conditions; future diamond prices; and the level of worldwide
diamond production. These assumptions may prove to be incorrect.
Forward-looking information is subject to certain factors,
including risks and uncertainties, which could cause actual results
to differ materially from what the Company currently expects. These
factors include, among other things, the uncertain nature of mining
activities, including risks associated with underground
construction and mining operations, risks associated with joint
venture operations, risks associated with the recent process plant
fire at the Ekati Mine and the remote location of and harsh climate
at the Company’s mineral property sites, risks resulting from the
Eurozone financial crisis, variations in mineral resource and
mineral reserve estimates, grade estimates or expected recovery
rates, failure of plant, equipment or processes to operate as
anticipated, risks associated with regulatory requirements, the
risk of fluctuations in diamond prices and changes in US and world
economic conditions, the risk of fluctuations in the Canadian/US
dollar exchange rate, uncertainty as to whether dividends will be
declared by the Company’s board of directors or the Company’s
dividend policy will be maintained and cash flow and liquidity
risks. Actual results may vary from the forward-looking
information. Readers are cautioned not to place undue importance 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 CorporationDominion Diamond
Corporation is the world’s third largest producer of rough diamonds
by value. Both of its production assets are located in the low
political risk environment of the Northwest Territories in Canada
where the Company also has its head office. The Company is well
capitalized and has a strong balance sheet.
The Company operates the Ekati Diamond Mine and also owns 40% of
the Diavik Diamond Mine. Between the two mining operations,
diamonds are currently produced from a number of separate
kimberlite pipes providing a diversity of diamond supply as well as
reduced operational risk. It supplies premium rough diamond
assortments to the global market through its sorting and selling
operations in Canada, Belgium and India.
For more information, please visit
www.ddcorp.ca
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version on businesswire.com: http://www.businesswire.com/news/home/20160715005832/en/
Dominion Diamond CorporationInvestor
RelationsMs. Kelley Stamm, 416-205-4380Manager, Investor
Relationskstamm@ddcorp.ca