Ekati Diamond Mine Misery underground pit
PERTH, Australia, March 13, 2023 (GLOBE NEWSWIRE) -- Burgundy Diamond Mines has entered into a binding share purchase agreement to acquire 100 per cent 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.
Kim Truter CEO of Burgundy said.
“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-coloured diamonds at Ekati and then cut and polish them in our facilities in Perth to go into high-end jewellery designs.”
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 optimising 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-coloured 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.
Burgundy Executive Chair, Michael O’Keefe said,
“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.”
Arctic Canadian Diamond Company Limited is headquartered in Calgary, Canada and Arctic Canadian Diamond Marketing N.V. is the sales office in Antwerp, Belgium. To learn more about Ekati Diamond Mine and the proposed transaction please visit the Burgundy Diamonds website to view its ASX Announcement.
Further Information: Kim Truter Chief Executive Officer Burgundy Diamond Mines Ltd info@burgundy-diamonds.com +61 8 6313 3945
Investors and Media: Citadel-MAGNUS Russell Quinn rquinn@citadelmagnus.com +61 403 322 097
About Burgundy Diamond Mines Limited
Burgundy Diamond Mines is focused on the mining, production and sale of polished Fancy Colour diamonds through a vertically integrated business model, with the vision to become the world’s leading end-to-end diamond company.
In mid-2021, Burgundy acquired capability and facilities for the cutting and polishing of rough diamonds in Perth, Western Australia. This capability will be used for cutting and polishing of Burgundy’s own production from future mining operations, as well as rough diamonds from third party producers.
About Arctic Canadian Diamond Company Limited
Arctic Canadian Diamond Company Limited (Arctic Canadian) is a Canadian mining company and a significant producer and supplier of premium rough diamond assortments to the global market. It is the 100% owner of all businesses, assets and other interests comprising Ekati Diamond Mine. In addition to its mining and exploration operations, Arctic Canadian's sister company owns a marketing business with a sales office in Antwerp, Belgium which sells rough diamonds to manufacturers for cutting and polishing.
Ekati Diamond Mine has a long history and was the first diamond mine in Canada, which has been operating for close to 25 years. Ekati was previously owned by Dominion Diamonds ULC which was taken over by private investors, the current Arctic Canadian ownership, when major disruptions to the global diamond trade impacted cashflows during the COVID-19 pandemic.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/25079f93-bd97-45bc-bab5-5166291f0bf9
https://www.globenewswire.com/NewsRoom/AttachmentNg/2911c399-f488-4f28-845b-2535069ec2d4
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