Burgundy Diamond Mines Limited announced that it has applied for financial support from the Canada Enterprise Emergency Funding Corporation (CEEFC) under its Large Enterprise Tariff Loan Scheme. The company has been deemed eligible for funding of up to CAD 150 million and is currently undergoing a due diligence process expected to conclude in the coming weeks.
The funding is seen as critical to maintaining the financial viability of Burgundy and ensuring continued operations at its flagship Ekati mine in Canada, which has faced headwinds from challenging global market conditions.
Burgundy noted that the recent 50% U.S. tariff on diamond imports from India, the hub for more than 90% of global diamond manufacturing, has intensified downward pressure on rough diamond prices. This has significantly eroded company revenues and worsened industry-wide market challenges.
The Board and management said they are also pursuing alternative funding sources in parallel, underscoring the urgent need for liquidity support in light of the unprecedented strain on the global diamond industry.
Pending confirmation of sufficient external funding, Burgundy has voluntarily suspended trading of its securities on the Australian Securities Exchange. The company expects trading to resume once financing arrangements are secured.