Arctic Canadian Diamond Company Limited, including Ekati Diamond Mine, to be sold to Burgundy Diamond Mines Limited
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% of Arctic Canadian’s assets, most notably 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.
According to Burgundy’s announcement, Burgundy will become one of the world’s largest listed diamond companies.
“This is an exciting and transformational acquisition for Burgundy with potential to generate significant and growing returns for our shareholders,” said Burgundy CEO, Mr. Kim Truter.
“The acquisition of Ekati is complementary to Burgundy; we’ve been purchasing rough fancy-colored diamonds from Ekati in recent years, then cutting and polishing them in our facilities in Perth to go into high-end jewellery designs, as part of our vertically integrated business model.”
From the Financial Post – “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.” Tap here for the complete Financial Post feature.