Transformational acquisition of the Ekati Diamond Mine, Canada

Article content

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 a total consideration of US$136 million (~A$209 million).

Advertisements 2

Article content

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.

Article content

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 the 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 jewelery 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.

Article content

Advertisements 3

Article content

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 jewelery 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 colored polished luxury diamonds.

Advertisements 4

Article content

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 hope this transaction will create significant value for all stakeholders.”

Arctic Canadian Diamond Company Limited is headquartered in Calgary, Canada and Arctic Canadian Diamond Marketing NV is the sales office in Antwerp, Belgium. To learn more about the Ekati Diamond Mine and the proposed transaction please visit the Burgundy Diamonds website to view its ASX Announcement.

About Burgundy Diamond Mines Limited

Burgundy Diamond Mines is focused on the mining, production and sale of polished Fancy Color diamonds through a vertically integrated business model, with the vision to become the world’s leading end-to-end diamond company.

Advertisements 5

Article content

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 consisting of 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.

Advertisements 6

Article content

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 cash flows during the COVID-19 pandemic.

Photos accompanying this announcement are available at


Postmedia is committed to maintaining a lively but civil forum for discussion and encourages all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Join the Conversation