Published: March 15, 2023 |

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Burgundy Diamond Mines has entered into a binding share purchase agreement to acquire 100 percent of Arctic Canadian Diamond Company Limited’s assets, most notably the world-class Ekati Diamond Mine, and other interests in Canada’s Northwest Territories for total consideration of US$136 million (A$209 million).

The proposed acquisition of Arctic Canadian Diamond Company is transformational for Burgundy — post completion, making Burgundy the largest ASX-listed diamond company and one of the largest listed diamond companies globally. The newly acquired Ekati Diamond Mine completes Burgundy’s strategy of becoming truly vertically integrated across the diamond value chain.

The Burgundy board and management team bring a great deal of experience which will support future mining projects and capitalize on the unrealized potential of Ekati.

“This is an exciting and transformational acquisition for Burgundy with potential to generate significant and growing returns for our shareholders. The acquisition of Ekati is complementary to Burgundy’s vertically integrated business model where it can directly produce rough fancy-colored diamonds at Ekati and then cut and polish them in our facilities in Perth to go into high-end jewellery designs,” said Kim Truter CEO of Burgundy.

“I believe that this transaction is a significant positive development for Ekati and for the North. I want to acknowledge and thank our current owners for facilitating the restart of operations at Ekati in early 2021. The hard work of our people has led to a return to steady state profitable operations and successfully demonstrated the longer-term value of the Ekati asset that attracted Burgundy to this transaction,” said President and CEO of Arctic Canadian, Rory Moore.

“I am optimistic about the future of Arctic Canadian. This equity-based investment by Burgundy will greatly improve the financial foundation of the company and our goal of extending mine life at Ekati, while continuing to provide employment opportunities for many people in Northern communities,” said Arctic Canadian Chief Financial Officer, Kristal Kaye.

The proposed acquisition will be considered by Burgundy shareholders where the equity will be raised via a conditional placement to raise up to US$150 million (A$231 million). The placement will be subject to a shareholder vote at its general meeting, currently expected to take place in late April 2023.

Post completion, Burgundy will be focused on optimizing Ekati’s mine performance and extending mine life through, among other things, underwater remote mining, assessment of the Jay Deposit and Fox Underground opportunities, and systematic exploration using newly applied machine learning (artificial intelligence) technology.

Burgundy has been purchasing high value fancy-colored rough diamonds from Ekati since 2021, cutting and polishing them at its facility in Perth, Australia and selling them as luxury polished diamonds in high-end jewellery boutiques. As a result of the proposed acquisition, Burgundy is expected to produce significant volumes of rough diamonds for sale as well as significantly expand the cutting, polishing and sale of fancy coloured polished luxury diamonds.

“The transaction is a genuine game-changer for both Burgundy and Arctic Canadian. Having been involved with Burgundy since 2017, this exciting acquisition completes Burgundy’s vertically integrated business model: bringing the world’s most beautiful diamonds to market from discovery through to design. We are confident that both Burgundy and Ekati have a very bright future and we expect this transaction will create significant value for all stakeholders,” said Burgundy Executive Chair, Michael O’Keefe.

About Burgundy Diamond Mines
Burgundy Diamond Mines Limited, a diamond exploration company, focuses on developing diamond projects. The company is also engaged in diamond cutting and polishing activities, as well as sells diamonds under the brand Maison Mazerea. It holds 100 percent interest in the Nanuk Diamond project located at East of the Ungava Bay in Northern Quebec. The company also holds an 18 percent interest in the La Victoria Gold-Silver project located in Peru. In addition, it has an option to acquire interests in the Naujaat Diamond project located in Canada and the Ellendale Diamond project located in the West Kimberley region of Western Australia, as well as an exploration alliance agreement in Botswana. The company was formerly known as EHR Resources Limited and changed its name to Burgundy Diamond Mines Limited in November 2020. Burgundy Diamond Mines Limited was incorporated in 2012 and is based in Perth, Australia.

To stop by Burgundy Diamond Mines’ website, CLICK HERE

About Arctic Canadian Diamond Company
Arctic Canadian Diamond Company Ltd. is a significant producer and supplier of premium rough diamond assortments to the global market. The company owns and operates the Ekati Diamond Mine located approximately 300 kilometers northwest of Yellowknife in Canada’s Northwest Territories. The Ekati property consists of 121 mining leases covering approximately 113,485 hectares with active open pit and underground mining operations. Arctic Canadian Diamond Company Ltd. has a supporting office in Calgary, Alberta and a diamond sales office in Antwerp, Belgium.

To stop by Arctic Canadian Diamond’s website, CLICK HERE

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