Burgundy Diamonds Acquires 100% of Artic Canadian’s Assets Including Ekati Mine

In-depthRough Market

Australia-based Burgundy Diamond Mines has signed a binding share purchase agreement to acquire Canada-based Artic Canadian’s (AC) assets, including the entirety of Ekati Diamond mine, for nearly $136m. AC owns 100% of all businesses, assets and other interests comprising the producing Ekati mine in Canada’s Northwest Territories and expects the sale to result in a significant recapitalization of the firm and allow for continued operations for the Ekati Diamond Mine, which has been in production for nearly 25 years.

Burgundy will acquire a 100% stake in Arctic Canadian Diamond Company, the vendor, and 100% of the common shares of Arctic Canadian Diamond Marketing. The ‘transformational’ acquisition is said to make the firm the largest ASX-listed diamond company and one of the largest listed diamond companies across the globe.

Burgundy CEO Kim Truter said: “The acquisition of Ekati is complementary to Burgundy’s vertically integrated business model where it can directly produce rough fancy-coloured diamonds at Ekati and then cut and polish them in our facilities in Perth to go into high-end jewellery designs.”

AC is responsible for the management of the supply chain, sorting, preparation, marketing and sales of rough diamonds from the Ekati mine. The deal consideration will be settled through $21m in Burgundy ordinary shares and a deferred $15m cash payment in December 2023 to the vendor.

Burgundy will also repay the majority of AC’s outstanding debt of $100m.
The firm currently has around 1,100 employees.