Burgundy wish ASX to suspend trading securities

 

 

Attempted to obtain external funding up to CAD 150 million 

The Company has applied for funding to the Canada Enterprise Emergency Funding Corporation (CEEFC) under its Large Enterprise Tariff Loan Scheme. The Company has been advised that it has been approved as eligible for such funding of up to CAD 150 million and is now undergoing a due diligence process with CEEFC. That process is expected to conclude in a matter of weeks.  

External funding, whether from the CEEFC or via a combination of other sources, is necessary to ensure the continued financial viability of the Company and the operations at the Ekati mine, which, as previously announced, has been the subject of ongoing challenging market conditions.  

A further drop in rough diamond prices can be directly attributed to the imposition of the US tariffs applicable to the global diamond trade in particular the 50% tariff on imports from India, which accounts for over 90% of global diamond manufacturing. 

These tariff measures have placed additional downward pressure on rough diamond prices and materially impacted the Company’s revenues. Separately, the Board and management of the Company continue to pursue all other avenues of attracting external funding in what is a highly challenged time for the global diamond industry.  

Until the Company is able to secure sufficient external funding, the Company has voluntarily requested ASX to suspend trading in its securities. The Company expects the suspension to be lifted upon release of an announcement confirming that sufficient external funding has been secured.