Arctic Canadian Diamond Company Ltd. has made its entry into a binding share purchase agreement with Burgundy Diamond Mines Limited, a company publicly traded in Australia.
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Burgundy has decided to gain 100% of Arctic Canadian’s assets, especially the Ekati Diamond Mine in the Northwest Territories of Canada, along with other interests for consideration of around USD $136 million. The projected transaction is subject to funding along with the agreement of Burgundy’s shareholders, anticipated in late April 2023.
Ekati Diamond Mine has been functioning for nearly 25 years. During this time, it has offered key positive socio-economic advantages to the North. The sale declared on March 13th, 2023, will lead to a considerable recapitalization of Arctic Canadian, securing continued longevity and operations for the mine. Arctic Canadian has a workforce of around 1,100 people, many of them from local Northern communities.
Burgundy Diamond Mines Limited is located in Perth of Western Australia. It possesses and operates the only commercial diamond polishing and cutting facility in Australia. The attainment of Ekati would complete Burgundy’s strategy of becoming truly vertically integrated throughout the diamond value chain, thus generating high-value, ethically sourced natural diamonds from the mine.
With experience in mine investments and mining, the management and directors at Burgundy hold a strong track record of efficiency in the industry.
Burgundy Diamonds is headed by Kim Truter, CEO and a mining professional with around 40 years of expertise, previously with Rio Tinto and most recently with De Beers Canada. Kim collaborates with well-known mining entrepreneurs Michael O’Keeffe and Marc Dorion, who drive the company as its board of directors. Michael O’Keeffe has wide experience investing in mining resources in the United States, Canada, and Australia.
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.
Rory Moore, President and CEO, Arctic Canadian Diamond Company
I am optimistic about the future of Arctic Canadian. 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.
Kristal Kaye, Chief Financial Officer, Arctic Canadian Diamond Company
Source: https://arcticcanadian.ca/