Allens has advised Burgundy Diamond Mines on its proposed acquisition of the world-class Ekati Diamond Mine in Canada's Northwest Territories, a proposed ~$231million capital raising to fund the acquisition and the proposed re-listing of the enlarged group on the ASX.
On completion of this transformational cross-border deal, Burgundy will become the largest ASX-listed diamond company and one of the largest listed diamond companies globally.
Burgundy will conduct an equity raising via a conditional placement to raise up to ~A$231 million to fund the proposed acquisition. Given the significant change to the scale of Burgundy's activities, the proposed acquisition and capital raising will be conditional on Burgundy shareholder approval and the re-listing of the enlarged group on the ASX.
'It's our privilege to support Burgundy's board and management team on the proposed acquisition of the Ekati Diamond Mine to create of one of the world's largest listed diamond companies.This is a transformational deal for Burgundy,' said lead Partner Charles Ashton.
'This transaction is indicative of a broader uptick in cross-border M&A activity in the mining and resources sector, which we expect will continue throughout 2023.'
Allens worked alongside Burgundy's Canadian legal advisers Davies Ward Phillips & Vineberg LLP.
