14 August 2024
Burgundy 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. Significantly, Burgundy can confirm it has successfully finalized 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.
“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.