• Secured C$115M loan through Canada's Large Enterprise Tariff Loan facility
• Loan to fund continued development, reactivation of operations, and working capital
• Restructured existing senior debt, environmental surety bonds, and trade creditor positions

Burgundy Diamond Mines Limited (ASX:BDM) has secured an up to C$115 million loan through Canada's Large Enterprise Tariff Loan (LETL) facility, managed by the Canada Enterprise Emergency Funding Corporation (CEEFC). The loan will be used for continued development of underground operations, re-activation of the Sable open pit, completion of the Fox wash plant, and general working capital. As part of the loan agreement, Burgundy has undergone a significant financial restructuring, including 100% subordination of existing senior debt to the new loan, extension of senior debt maturity, and negotiated discounts and structured payment plans for trade creditors. The company has also closed its Antwerp office to deliver cost savings. Rough diamond markets remain challenging for Ekati, and the loan facility provides an opportunity to continue operations while working toward a lower cost profile and focusing on higher-value diamond deposits. Burgundy is also seeking to establish underground operations at the high-value previously mined Fox deposit, which has a 12+ year mine life. The loan facility is supplemented by a Loan Program Agreement that imposes certain obligations on Burgundy, including maintaining Canadian employment levels, providing ESG and climate-related reporting, and delivering economic benefits to Canada.

The loan facility provides Burgundy with the opportunity to continue operations at Ekati while working toward a significantly lower cost profile, with a focus on higher-value diamond deposits within the Ekati complex. In the medium term, the company is seeking to establish underground operations at the high-value previously mined Fox deposit, which has a 12+ year mine life and represents the next chapter for Ekati.