Burgundy Diamond Mines Limited announced the successful completion of a conditional placement, raising $150 million (~A$231 million), to acquire the renowned Ekati diamond mine in Canada’s Northwest Territories. The placement, which saw strong investor participation, marks a significant step in Burgundy’s ambitious growth strategy and positions the company as one of the largest listed diamond companies worldwide.
The placement involved the acquisition of 100% of the common shares of Arctic Canadian Diamond Company Limited (ACDC) and 100% of the shares of Arctic Canadian Diamond Marketing NV (ACDM) from Arctic Canadian Diamond Holding LLC. ACDC is the sole owner of Ekati diamond mine, a prominent mining operation known for its high-quality diamonds. ACDM is responsible for managing the supply chain, sorting, preparation, marketing, and sales of rough diamonds extracted from Ekati.
In conjunction with the placement, Burgundy Diamond Mines invited eligible shareholders in Australia and New Zealand to participate in a share purchase plan (SPP). The SPP generated A$3,722,000, which will be allocated towards additional working capital, supporting Burgundy’s ongoing operations and future growth initiatives.
Burgundy Executive Chairman Michael O’Keeffe said, “This is a great result for Burgundy and further recognition of our bright future. I would like to personally thank shareholders for their support and their confidence in our strategy, with the transformational acquisition of the Ekati Diamond Mine approaching formal completion.”
Burgundy’s CEO, Kim Truter, added “We are confident that this transaction will create significant value for all stakeholders as we become one of the largest listed diamond companies in the world with a strong balance sheet that is well positioned for sustainable growth.”