CALGARY, Alberta, March 13, 2023 (GLOBE NEWSWIRE) — Arctic Canadian Diamond Company Ltd. has entered into a binding share purchase agreement with Burgundy Diamond Mines Limited, a company publicly traded in Australia (ASX:BDM). Burgundy has agreed to acquire 100 per cent of Arctic Canadian’s assets, most notably the Ekati Diamond Mine in Canada’s Northwest Territories, as well as other interests for consideration of approximately USD$136 million. The proposed transaction is subject to financing as well as the approval of Burgundy’s shareholders which is expected in late April 2023.
Ekati Diamond Mine has been in operation for close to 25 years during which time it has delivered significant positive socio-economic benefits to the North. The sale announced today will result in a significant recapitalization of Arctic Canadian, which will secure continued operations and longevity for the mine. Arctic Canadian has a workforce of approximately 1,100 people, many of them from local Northern communities.
Burgundy Diamond Mines Limited is based out of Perth, Western Australia. Burgundy owns and operates Australia’s only commercial diamond cutting and polishing facility. The acquisition of Ekati would complete Burgundy’s strategy of becoming truly vertically integrated across the diamond value chain, producing high-value ethically sourced natural diamonds from mine, through cutting and polishing, to ultra-luxury branded retail sales.
The directors and management at Burgundy are experienced in mining and mine investments and have a strong track record of success in the industry. This makes for a good fit with Arctic Canadian and its Ekati Diamond Mine. Burgundy Diamonds is led by CEO, Kim Truter, a mining professional with nearly 40 years of experience, most recently with De Beers Canada and previously with Rio Tinto. Kim is joined by prominent mining entrepreneurs, Michael O’Keeffe and Marc Dorion, who guide the company as its board of directors. Michael O’Keeffe has extensive experience investing in mining resources in Canada, the United States and Australia.
President and CEO of Arctic Canadian, Rory Moore commented, “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.”
“I am optimistic about the future of Arctic Canadian,” said Arctic Canadian Chief Financial Officer, Kristal Kaye. “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.”
About Arctic Canadian Diamond Company Ltd.
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.
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2911c399-f488-4f28-845b-2535069ec2d4
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