Burgundy Diamond Mines kicks off $231m acquisition...

Burgundy Diamond Mines kicks off $231m acquisition raisingAnthony Macdonald, Sarah Thompson, Kanika Sood and Emma RapaportMar 29, 2023 – 10.07amSaveShareMichael O’Keefe, of Riversdale and Champion Iron fame, is back from roadshows for Burgundy Diamond Mines and ready to start collecting bids for the company’s $US150 million ($231 million) raising to help bankroll its acquisition of Canada’s Ekati diamond mine.



Riversdale Resources’ Michael O’Keeffe, left, pictured with Steve Mallyon. O’Keeffe’s back chasing funds for his ASX-listed diamonds business Burgundy. Sasha Woolley

Burgundy Diamond Mines had brokers Aitken Mount and Bell Potter offering shares at 25¢ a pop, a 16.7 per cent discount to the last close. The offer was structured as a fully underwritten, conditional placement.

The company wanted to chase the institutional raising with a $US7million ($10 million) share purchase plan.Of the total, Burgundy would use $US136 million ($209 million) to buy Ekati Diamond mine, including $US21 million in scrip, $US15 million cash, and $US100 million to pay down Artic Canadian Diamond Company’s debt.

Burgundy has pitched Ekati as a transformational acquisition and as one of top-10 diamond mines globally on a production basis in a Tier 1 jurisdiction. Last year, it sold 4.2 million carats at an average price of $US117 per carat to deliver $US494 million and $US200 million EBITDA in 2022.

Bids were due 12pm Friday.