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Burgundy Diamond Mines has secured a further CAD 60 million ($44 million) on top of the previous loan it received in December.
It received the financing from Canada’s Large Enterprise Tariff Loan (LETF) facility, which the Canada Enterprise Emergency Funding Corporation (CEECF) manages, the miner said Monday. The CEECF is a division of Canada Development Investment Corporation (CDEV), which provides financial support to major Canadian enterprises affected by current or potential tariffs and countermeasures.
Burgundy initially secured a CAD 115 million ($84.9 million) loan in December 2025 to support continued operations at its Ekati mine during the market downturn. By the end of the year, the company had drawn $32.8 million from this facility, and it has since used the balance.
The miner reported a net loss of $86.8 million for the full year of 2025, amid a challenging diamond market and US tariffs. These factors have created doubt as to whether the group can continue as a going concern, it said. The miner is actively exploring various measures to enhance liquidity and address the anticipated shortfall, it continued.
It is uncertain whether the added funding will help the company stay afloat. The miner is relying on obtaining further funding in the form of debt or equity financing.
“There is material uncertainty as to whether the required financing will be secured within the necessary time frame and on acceptable terms,” said Burgundy, adding that it was also unsure whether “price and production forecast [would be] met to enable the group to generate sufficient cash from operations to meet its obligations in the next 12 months.”
Image: The Ekati mine. (Burgundy Diamond Mines)
