Marlene Fipke takes control of Dia Met

As part of a $120-million divorce settlement, Charles Fipke has agreed to transfer all his shares in Dia Met Minerals (DMM-T) to his former wife. The agreement makes Marlene Fipke the largest single shareholder of the Kelowna-based company, with 12.7% of the class A shares and 24.8% of the class B shares.

Dia Met holds a 29% stake in the Ekati diamond mine in the Northwest Territories, as well as a portfolio of exploration projects in various parts of the world.

The change in control isn’t expected to trigger any dramatic shifts in direction for Dia Met any time soon, though cash flow from Ekati provides muscle for potential growth opportunities in the years ahead. Some changes to the board are expected, including an eventual replacement for James Eccott, who plans to retire as president.

Ekati is operated 51%-owned by BHP Diamonds, a unit of Broken Hill Proprietary (BHP-N). The remaining 20% stake in the joint venture is shared equally by Charles Fipke and fellow geologist Stewart Blusson.

During the 9-month period ended Oct. 31, 1999, Dia Met’s share of sales from the Ekati mine totalled $124 million. During this period, 1.7 million carats were sold for US$289 million, or an average of US$165 per carat.

Dia Met teamed with the Australian major in the early 1990s, shortly after Charles Fipke made his initial diamond discoveries. The Canadian geologist spent almost a decade tracing trains of diamond indicator minerals to their source, a cluster of kimberlite pipes in the Lac de Gras region. The discovery sparked one of the largest staking rushes in Canadian history.

The Fipke marriage went off the rails after the discoveries were made but before the $900-million mine entered production, in October 1998.

Charles Fipke is now devoting his efforts to Cantex Mine Development (CD-V), which is exploring for gold and base metals in Yemen.