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Burgundy Diamond Mines is looking for external funding to allow it to continue operations at its Ekati mine in Canada’s Northwest Territories, citing financial challenges stemming from weak demand and tariffs.
The company has applied to the Canada Enterprise Emergency Funding Corporation (CEEFC) under its Large Enterprise Tariff Loan Scheme, which allows for relief of up to CAD 150 million ($107.8 million), it said Monday. Through that process, Burgundy will undergo due diligence and will find out in a few weeks if approved.
The miner is also seeking funding from other sources, it explained.
“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…has been the subject of ongoing challenging market conditions,” Burgundy stated. “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% tariffs on imports from India. These tariff measures have placed additional downward pressure on rough-diamond prices and materially impacted the company’s revenue.” Until it secures funding, Burgundy has asked the Australian Securities Exchange (ASX) to suspend all trading on its shares, it added.
Image: Rough diamonds from the Ekati mine. (Burgundy Diamond Mines)
