PERTH, Australia, March 13, 2023 (GLOBE NEWSWIRE) — Burgundy Diamond Mines has entered into a definitive share purchase agreement to acquire 100 percent of the assets of Arctic Canadian Diamond Company Limited, specifically the world-class Ekati Diamond Mine and other interests in the Northwest Territories of Canada for a total of US$136 million (approximately AUD209 million).

The proposed acquisition of Arctic Canadian Diamond Company is fundamental to Burgundy – upon completion, Burgundy will become the largest diamond company listed on the ASX and one of the largest publicly traded diamond companies in the world. The newly acquired Ekati Diamond Mine completes Burgundy’s strategy to become truly vertically integrated across the diamond value chain.

Burgundy’s board and management team bring a wealth of experience that will support future mining projects and capitalize on Ekati’s unrealized potential.

said Kim Truter, CEO of Burgundy.

“This is an exciting and transformative acquisition for Burgundy with the potential to generate significant and growing returns for our shareholders. The acquisition of Ekati complements Burgundy’s vertically integrated business model, where the company can create fancy colored rough diamonds directly at Ekati, and then cut, cut and polish them at our Perth facilities to turn them into high-end jewelry designs .”

The Proposed Acquisition is being considered by Burgundy shareholders, with equity being raised via a conditional placement to raise up to US$150 million (approximately A$231 million). The placement is subject to a shareholder vote at the Annual General Meeting, which is currently expected to take place at the end of April 2023.

Upon completion, Burgundy will focus on optimizing Ekati’s mine performance and extending mine life, including through subsea remote mining, evaluating the opportunities of the Jay deposit and Fox subsoil, and systematic exploration using new applied technologies of machine learning (artificial intelligence).

Burgundy became…