Mountain Province Diamonds Signs Non-Binding Agreement With Largest Shareholder For US$50 Million In New Debt
Mountain Province Diamonds Inc. (TSX: MPVD) is looking to strengthen its balance sheet. The firm announced on Wednesday night a non-binding term sheet with its largest shareholder, Dermot Desmond.
According to the proposed agreement, Desmond is expected to issue approximately US$50 million in new notes secured subordinate to the company’s existing debt. The credit will incorporate an equity component and is scheduled to mature in late 2027.
“This planned investment by our largest shareholder and significant debt holder, Mr. Dermot Desmond, further demonstrates his confidence in Mountain Province Diamonds, and the strong macro-environment for our diamonds,” said CEO Mark Wall.
The firm plans to use the proceeds partly to repay the US$25 million revolving credit facility by Dunebridge Worldwide, an entity controlled by Desmond. The facility is maturing on March 31, 2022.
The mining firm is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories.
Mountain Province Diamonds last traded at $0.83 on the TSX.
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