Ekati Owner in Talks for Funding to Keep Business Afloat

Burgundy Diamond Mines has requested a voluntary suspension of its stock as it negotiates external funding with multiple parties in an effort to keep its business running.

The company, which owns the Ekati diamond mine in Canada, said Wednesday that the suspension was “necessary to…manage its continuous disclosure obligations…in relation to the completion of a funding package which is critical to [its] ongoing financial viability.”

The miner is currently actively engaged with “a number” of third parties regarding its external funding, it explained. Without the money, Burgundy will not be able to continue operations at Ekati, and the company believes continued trading of its stock is likely to prejudice its ability to make those deals.

Last month, the company stated it was seeking relief of up to CAD 150 million ($107.8 million) through the Canada Enterprise Emergency Funding Corporation (CEEFC), but that it was also looking for private sources of cash, due to the ongoing downturn in the diamond market.

Burgundy expects to have a deal in place by November 6, it added.

In September, Burgundy reported a loss of $29.5 million for the first six months of the year, which ended June 30, compared to a profit of $9.4 million during the same period of 2024. That loss included a $7.8 million write-down on the value of its goods amid the challenging market. Meanwhile, revenue fell 44% to $125.2 million.

Image: Rough diamonds from Ekati. (Burgundy Diamond Mines)