Burgundy Diamond Mines, an owner of the Ekati diamond mine in Canada, has secured an up to C$115 million ($80 million) loan through Canada’s Large Enterprise Tariff Loan (LETL) facility.
The loan, which has a maximum term of 7 years, is managed by the Canada Enterprise Emergency Funding Corporation (CEEFC) and provides financial support to large Canadian enterprises impacted by actual and potential tariffs and countermeasures.
Funds will be used for various purposes including continued development of underground operations, re-activation of the Sable open pit operation, completion of the Fox wash plant, general working capital and costs of the financing.
“This loan is critical to assisting Burgundy and Ekati as it attempts to navigate rough diamond markets impacted by the current 50% US tariff on imports from India, where 90% of rough diamonds globally are cut and polished,” said Burgundy CEO and director Jeremy King.
“Rough diamond markets continue to be highly challenging for Ekati, and the loan facility provides the opportunity to continue operations whilst working toward a significantly lower cost profile, with a focus on higher-value diamond deposits within the Ekati complex.”
King added that in the medium term, the company is seeking to establish underground operations at its high-value previously mined Fox deposit which has a 12+ year mine life and “represents the next chapter for Ekati.”
Earlier in September, Burgundy underwent a due diligence process with CEEFC to get access to the loan facility, citing challenging market conditions as a reason to do so. At the same time, it had voluntarily requested ASX to suspend trading in its securities while it pursues all other avenues of attracting external funding.
Theodor Lisovoy, Managing Editor, Rough&Polished
