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CALGARY, Alberta, May 01, 2026 (GLOBE NEWSWIRE) — Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) advises that its subsidiary, Arctic Canadian Diamond Company Ltd. (“ACDC”) has filed for insolvency protection under the Companies’ Creditors Arrangement Act (“CCAA”). Incorporated in British Columbia, ACDC has obtained an order from the Supreme Court of British Colombia (the “Court”), granting ACDC protection under the CCAA. ACDC owns and operates the Ekati Diamond Mine. The protection order also extends to Burgundy by way of a non-applicant stay party order.
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Burgundy intends to use the CCAA process to engage in discussions with its lenders, creditors and other stakeholders, to solicit and evaluate strategic alternatives to restructure ACDC financially and operationally, as it continues to navigate difficult geopolitical, economic and industry conditions.
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The CCAA filing was necessitated by a number of factors, including the ongoing adverse impact of US tariffs on the natural diamond industry, sustained challenging demand conditions being experienced by all natural rough diamond producers globally, and increasing costs, including as a result of recent significant increases in fuel prices due to the conflict in the Middle East.
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Given these and other factors, the Company believes filing for protection under the CCAA for ACDC is the most prudent course of action. Burgundy has been working consistently to cut costs and recast its business plan to focus on producing the highest quality goods within its asset base. Despite these efforts, and after careful consideration of all other available alternatives, Burgundy’s board of directors determined that it is in the best interests of ACDC and all its stakeholders to seek protection under the CCAA.
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Burgundy’s commitment to employees and local communities remains a priority. ACDC intends to continue mining operations at Ekati Diamond Mine during the CCAA process. Burgundy continues to believe in the long-term viability of the Ekati Diamond Mine and intends to emerge stronger, better and able to deliver value to all stakeholders.
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During the CCAA process, it is expected that ACDC’s management will continue to be responsible for handling day-to-day operations of the Ekati Diamond Mine.
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Under the terms of the Initial Order, FTI Consulting will serve as the Court-appointed Monitor of ACDC to oversee the CCAA proceedings and report to the Court. A copy of the Initial Order and other Court materials and information related to the ACDC’s CCAA proceedings, may be updated or amended from time to time, and are available on the website maintained by FTI Consulting at https://cfcanada.fticonsulting.com/ACDC/
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Blake, Cassels & Graydon LLP is serving as Burgundy’s legal counsel.
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Burgundy intends to provide further updates on the CCAA proceedings when there are significant developments.
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