Burgundy sets out breach remedies as ASX directs a November update
Its 9 October notice accepts that three 2025 rough pre-sales to a director's company needed shareholder approval first. ASX lists Burgundy as long suspended, with three periodic reports overdue.
By Carat Capital
What changed
The board lists remedies. Burgundy Diamond Mines set out remedies on 9 October for three 2025 rough-sale deals with a director's company, worth about US$50.6 million. ASX directed a further update, expected around 30 November.
What it means
- If you hold Burgundy: Trading has been suspended since 29 September 2025. ASX's deadline for trading to resume is 29 September 2027.
- If you lend against rough: Burgundy funded itself by pre-selling inventory to an insider.
- What this is not: An underpricing finding. The expert found fair market value, but judged the dealings 'not fair but reasonable'.
Key figures
| Value of the director dealingsthree agreements, 2025 | US$50.6m |
|---|---|
| Approval threshold per deal5% of US$62.04m equity | US$3.10m |
| Trading suspended sinceat Burgundy's request | 29 Sep 2025 |
| Deadline for the oldest reportor removal from the list | 31 Mar 2027 |
Source: Burgundy Diamond Mines ASX announcement, 9 October 2026, and ASX's list of long-term suspended entities, 16 October 2026, both read from the PDFs. Figures in US dollars as printed.
Three pre-sales to a director
Advances bought the rough. Between May and July 2025, Choron BV paid Burgundy in advance for independently valued rough inventories, then took the diamonds. It also held security over the stones.
A director controlled Choron. Choron was a related party because Anshul Gandhi, a Burgundy director, controlled it. Each deal exceeded the approval threshold of about US$3.10 million, 5% of US$62.04 million in equity.
No vote came first. The agreements were signed on 31 May, 30 June and 24 July 2025 without prior shareholder approval.
| Date | Event |
|---|---|
| 31 May, 30 June, 24 July 2025 | Three advance diamond purchase agreements with Choron BV, without prior approval |
| 29 September 2025 | Burgundy requests a voluntary trading suspension |
| 7 October 2025 | Burgundy announces the Listing Rule 10.1 breach |
| 27 March 2026 | Independent expert's report released |
| 31 March 2026 | Full-year accounts due; not lodged by 16 October |
| 30 April 2026 | Non-associated shareholders ratify the dealings; annual report due |
| 11 September 2026 | Half-year accounts due; not lodged by 16 October |
| 9 October 2026 | Board acknowledges the breach and lists remedies |
| About 30 November 2026 | Supplementary announcement on the governance review, directed by ASX |
| 31 March 2027 | ASX deadline to lodge the oldest overdue report |
| 29 September 2027 | ASX deadline for trading to resume |
US$3.10m is 5% of US$62.04m: 62.04 x 0.05 = 3.102. The threshold applies to each agreement, and Burgundy says each exceeded it; US$50.6m is the total of all three, so no multiple of the threshold is printed. ASX says an entity that misses either deadline is removed from the official list.
Ratified after the fact
Suspension, then disclosure. Burgundy requested a trading suspension on 29 September 2025 and announced the breach on 7 October 2025.
Shareholders voted in April. An independent expert's report followed on 27 March 2026. Shareholders not associated with Choron ratified the dealings on 30 April 2026.
Governance review due. Burgundy is appointing a joint company secretary; its chief financial officer has held the role alone. ASX directed a further announcement, expected around 30 November.
ASX lists missing reports
Three reports outstanding. ASX's 16 October list of long-suspended entities names Burgundy. Its full-year accounts, annual report and half-year accounts, due 31 March, 30 April and 11 September 2026, are outstanding.
Two deadlines stand. The oldest report must be lodged by 31 March 2027, and trading must be able to resume by 29 September 2027. ASX removes entities that miss either.
Ekati went into receivership. Burgundy's Ekati mine in Canada's Northwest Territories was placed in court receivership in July 2026.
What to watch
- About 17 NovemberBurgundy expects the outcome of its external governance review.
- About 30 NovemberThe supplementary announcement ASX directed, on that review.
- 31 March 2027ASX's deadline for the oldest overdue report, the full-year accounts.
The story so far
Go deeper
Corrections
Correction, 24 October 2026: this article was first headlined 'Burgundy board says US$50.6m director deals broke an ASX rule'. The breach is not new: Burgundy announced it on 7 October 2025. What is new is the 9 October 2026 remediation notice and ASX's direction of a further announcement, and the headline, dek and What changed now lead on those. What was right as published: every figure and date. Raised by Carat Capital's standards desk on 21 October 2026.
What would change this call
Lodged accounts and a path to resumed trading before March. Then the breach closes as a remedied governance failure.
How ASX Listing Rule 10.1 works
A listed company needs shareholder approval before it disposes of a substantial asset to a related party, such as a director's company. Burgundy's notice puts substantial at 5% of equity interests.
Method
Burgundy Diamond Mines, 'Acknowledgement and Remediation of ASX Listing Rule 10.1 Breach', dated 'October 9 2026', fetched 21 October 2026 from ASX's document store with an identifying header, 200, 183,947 bytes; AES-encrypted PDF, text extracted by script, 6,051 characters. Greps on the text: '50.6' 1, '3.10' 1, '62.04' 1, '31 May 2025' 1, '30 June 2025' 1, '24 July 2025' 1, '29 September 2025' 1, '7 October 2025' 1, '27 March 2026' 1, '30 April 2026' 2, '17 November 2026' 1, '30 November 2026' 1, 'Anshul Gandhi' 1, 'not fair but reasonable' 1, 'fair market value' 1, 'Chief Financial Officer' 1. ASX, 'Long Term Suspended Entities', 16 October 2026, 200, 343,472 bytes, text 7,876 characters: 'Full Year Accounts due 31 March 2026' 4 (the string recurs for other entities; Burgundy's row was read), 'Half Year Accounts due 11 September 2026' 1, 'removed from the official list' 1; the company name prints in capitals. The 7 October 2025 notice was not read, so whether it carried the US$50.6 million total is not established. The notice names no mine; Ekati is Burgundy's mine per this paper's July reporting. ARCHIVE, by entity and period: Carat Capital's archive, 'Burgundy' 2 rows, ekati-goes-dark (17 July) and last-carats-at-diavik (21 July), opened: both cover the mine's closure; 'Choron' 0; 'Listing Rule' 0. Ours covers the July 2026 receivership; this covers the 2025 dealings and the October 2026 filings. NEW.