Skip to content
Oil Mining Resources

Burgundy concludes reclamation surety bonds agreement

Burgundy Diamond Mines 4 mins read

CALGARY, Alberta, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) is pleased to confirm that the agreement with the surety providers in relation to the reclamation bonds has been formally concluded and signed by all parties, in line with previously agreed principles (see ASX announcement dated March 13th, 2024).

Burgundy is required to post security with key government agencies to ensure reclamation is completed across its mining properties, as required by relevant legislation in Canada and the Northwest Territories. The security is provided in the form of either cash, letters of credit or surety bonds, or a combination of these.

Significantly, Burgundy can confirm it has successfully concluded the renegotiated cash collateralisation payment schedule to extend over four years, consistent with Ekati’s current life of mine plan, versus the previous terms requiring full payment in Q2-2024. The revised cash collateralisation schedule1 provides for quarterly instalments of ~US$11 million, concluding with a final payment of ~US$7 million in Q3-2027 (see figure 1 below).

This is a real game changer,” noted Kim Truter, CEO and Managing Director of Burgundy Diamond Mines. “Our revised long-term partnership and arrangement with our surety providers ensures our closure obligations are funded, releases cash to fund our mine extension options, and ensures we maintain a healthy cash reserve. Furthermore it reduces future financial liability related to reclamation requirements.

We remain increasingly optimistic regarding the attractiveness and optionality at Ekati, our cornerstone mining asset. With tier one infrastructure in place and a highly experienced operating team, the incremental capital cost and low execution risk of the mine life options are globally competitive. We also have significant exploration potential on or adjacent to our property.” said Truter.

Current conceptual mine life extension options include the extension of Misery underground, moving underground at Sable, developing an underground mine at Fox, processing high value Fox stockpiles, optimising the Point Lake project currently in the development stage, and implementing underwater remote mining technology, if trials are successful. Burgundy is committed to progressing work on the potential conceptual life of mine options in the most environmentally responsible and sustainable way, with support from regulators and local community stakeholders. The Company is anticipating formally publishing a new mine plan within the next 6 to 12 months.

Figure 1 – New payment schedule for reclamation surety bonds1

Figure 1 - New payment schedule for reclamation surety bonds (1)

1. Rounded numbers, actual amounts vary. Q1-2024 and Q2-2024 payments have been allocated to Q3-2024. C$:US$ price conversion of 1.35 (as used in the ASX announcement dated 13 March 2024). This release does not include Point Lake reclamation payments as they are secured under a separate agreement.

This announcement was authorised for release by the Board of Burgundy Diamond Mines Limited.

Contacts

Investor enquiriesMedia enquiries 
investor@burgundydiamonds.com

communications@burgundydiamonds.com 

About Burgundy Diamond Mines Limited

Burgundy Diamond Mines is a premier independent global scale diamond company focused on capturing the end-to-end value of its unique vertically integrated business model.

Burgundy’s innovative strategy is focused on capturing margins along the full value chain of the diamond industry, including mining, production, cutting and polishing, and the sale of diamonds. By building a balanced portfolio of diamond projects in favourable jurisdictions, including the globally ranked Canadian mining asset, Ekati, and a diamond cutting and polishing facility in Perth, Burgundy has unlocked access to the full diamond value chain. This end-to-end business model with total chain of custody provides traceability along every step of the process, with Burgundy able to safeguard the ethical production of the diamonds from mining to marketing and discovery to design. Burgundy was founded in Perth, Western Australia. The company is led by a world-class management team and Board.

Caution regarding Forward Looking Information

This document contains forward looking statements concerning Burgundy Diamond Mines Limited. Forward looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements in this document are based on Burgundy's beliefs, opinions and estimates as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions or estimates should change or to reflect other future developments.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a5446387-1c01-43b2-8763-7d39f2a59cb2


Primary Logo

More from this category

  • Finance Investment, Oil Mining Resources
  • 11/02/2025
  • 13:01
Jane Morgan Management

Amaero Fully Funded and Positioned for Commercialisation in FY2026

Sydney, Australia – 11 February 2025 – Amaero International Limited (ASX:3DA) is pleased to announce that it has successfully completed the bookbuild for an institutional placement to raise approximately A$22 million.Key Highlights Amaero successfully completed an institutional placement to raise A$22 million following strong support from existing cornerstone institutional investors as well as a new U.S-based institutional investor. Capital raising was fully subscribed by Pegasus Growth Capital, the Amaero Board, four lead institutional investors, and a new U.S-based institutional investor. Following the capital raise, Regal Funds Management and IFM Investors will join Pegasus Growth Capital and Fidelity International as substantial…

  • Contains:
  • Business Company News, Oil Mining Resources
  • 11/02/2025
  • 12:32
Jane Morgan Management

Challenger Gold Limited (ASX:CEL) Advances Towards Mining and Toll Milling at Hualilan Project

Highlights: Excellent progress towards mining and Toll Milling readiness at Hualilan. Final open pit mine design and mining schedules for Toll Milling pits completed. 10% increase in grade with the Schedule now entirely based on Indicated Resources. Initial 150,000t of material mined averages 8.7 g/t Au and 34.5 g/t Ag. Schedule delivers over 90,000t of toll milling material in first 3 months of mining. Enhanced operational flexibility as only 3 out of 4 potential pits are required. Mining schedule completion enables finalisation of contract mining and toll material haulage contracts. Toll Mill plant refurbishment commenced with equipment repairs in progress…

  • Contains:
  • Business Company News, Oil Mining Resources
  • 11/02/2025
  • 10:57
Terramin Australia Limited (ASX:TZN)

Terramin Reaffirms Scientific Basis and Economic Benefits of Bird in Hand Gold Project

KEY POINTS The Department for Energy and Mining (DEM) confirmed that BIHGP meets all environmental and regulatory requirements. No impact on water resources: Peer-reviewed studies confirm that local aquifers will remain unaffected. $220 million economic boost: The project will significantly contribute to South Australia's economy. 740 jobs created: Over 140 direct and 600 indirect employment opportunities. Ministerial decision contradicts DEM findings, raising concerns about regulatory consistency. Terramin Australia Limited (ASX: TZN) welcomes public discussion on its appeal regarding the Bird in Hand Gold Project (BIHGP) and wishes to clarify key facts following recent media coverage. Independent government assessment supports the…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.