Burgundy Diamond Mines Limited (ASX:BDM) has provided an update on its efforts to secure external funding. Burgundy Diamond Mines is a premier, independent, global-scale diamond company focused on capturing margins across the entire value chain from mining and production to the sale of diamonds. The company’s strategic approach involves building a balanced portfolio of diamond projects located in favourable jurisdictions, including the globally ranked Canadian mining asset Ekati.
The company has applied for funding from the Canada Enterprise Emergency Funding Corporation (CEEFC) under its Large Enterprise Tariff Loan Scheme. Burgundy has been advised that it is eligible for up to CAD 150 million and is now undergoing due diligence with CEEFC, a process expected to conclude in the coming weeks. Securing external funding, whether from the CEEFC or other sources, is deemed necessary to ensure the continued financial viability of the company and the operations at the Ekati mine.
According to the company announcement, a further drop in rough diamond prices is attributed to US tariffs applicable to the global diamond trade, including the 50% tariff on imports from India. The company noted that these tariff measures have placed additional downward pressure on rough diamond prices and materially impacted the company’s revenues. The Board and management of Burgundy Diamond Mines are reportedly pursuing all avenues of attracting external funding.
In light of the funding situation, Burgundy Diamond Mines has voluntarily requested the ASX to suspend trading in its securities. The company anticipates that the suspension will be lifted upon the release of an announcement confirming that sufficient external funding has been secured. The announcement was approved for release by the Board.
