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Burgundy Diamonds will begin a sales and investment solicitation process for its subsidiary Arctic Canadian Diamond Company (ACDC), including the Ekati mine and all of its assets.
The Supreme Court of British Columbia approved the process for finding a buyer and granted the company an extension on its creditor protection order until July 28, the miner said Wednesday. Burgundy initially filed the protection order at the beginning of May.
The court also approved an interim debtor-in-possession financing arrangement, which will protect the company from creditors while it uses funding to pay employees and operate the business.
Canada’s Northwest Territories, where Ekati is located, is also home to the Gahcho Kué mine. Part owner Mountain Province — which operates the site in a joint venture with De Beers — is also facing financial uncertainty and working on deals to preserve liquidity. Meanwhile, the region’s third deposit, Rio Tinto’s Diavik mine, closed in March.
Separately, Burgundy appointed Brent Mierau as its chief financial officer. Mierau joined the company last year as head of finance and has played a key role in securing critical funding while the diamond market contends with challenges, the company said.
“[Mierau] has already made a significant contribution to Burgundy through his financial leadership, disciplined approach, and ability to execute in a highly challenging market environment,” said Burgundy CEO Jeremy King. “His experience leading through complex business cycles, combined with his strong financial and operational expertise, make him exceptionally well-suited to the chief financial officer role.”
Image: An aerial view of the Ekati mine. (Burgundy Diamonds)
