Home Sports Mountain Province Diamonds provides additional information regarding the planned bond refinancing

Mountain Province Diamonds provides additional information regarding the planned bond refinancing



Mountain Province Diamonds Inc. (“Mountain Province” or the “Company”) (TSX: MPVD) (OTC: MPVD) today announces that it has entered into a non-binding indenture with certain holders (the ” Exchange Holders “) of its 8,000% Senior Secured Second Notes due 2022 (the “Existing Notes”), including entities ultimately owned by the Company’s largest beneficial shareholder, Mr. Dermot Desmond, for the partial refinancing of the Existing Notes. The Schedule of Terms sets forth the terms of the transaction (the ” Proposed Transaction “) in which the Exchange Holders will exchange the Existing Notes for new senior secured debt notes (the ” New Notes “). While the agreements are not binding, the Mountain Province is working with exchange owners to reach binding agreements as quickly as possible. Issuance of new loans depends, among other things, on the finalization of specific terms, the agreement and execution of final documentation, as well as the approval of regulatory bodies and disinterested shareholders.

The proposed transaction is currently expected to involve an exchange of approx US$190.0 million the aggregate principal amount of the existing bonds is approx 195.9 million USD the aggregate principal amount of the new loans. Approximately 65.3 million US dollars bonds of the new loan will be purchased by entities beneficially owned by Mr. Desmond. The New Notes are expected to be secured by the same assets securing the Existing Notes and on a second lien basis, with an interest rate of 9.0% per annum and a term of three years. The Company expects to repay the remaining balance of the Existing Notes with cash concurrent with the completion of the proposed transaction. The proposed transaction is not expected to involve the issuance of new shares.

Special Committee (” Special committee “) of the company’s board of directors (” board “) provides review and oversight of the Proposed Transaction, as well as any other potential alternative transactions aimed at the partial refinancing of the Existing Notes. The Special Committee consists of independent directors who have no direct or indirect interest in the Proposed Transaction. After consideration in the process, the Special Committee the committee recommended to the Council to approve the drafting of the conditions specifying the terms of the proposed transaction.

Due to the involvement of entities ultimately beneficially owned by Mr. Desmond, the proposed transaction is subject to approval by the Toronto Stock Exchange (” TSX “) and approval of disinterested shareholders of the company in accordance with Multilateral Document 61-101 – Protection of Minority Security Holders in Special Transactions and TSX rules.

The proposed transaction is subject to the completion of the final documentation and approvals described above. There can be no assurance that the proposed transaction will be completed on the terms described herein or at all.


About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% interest with De Beers Canada in the Gahcho Kué diamond mine located in the Northwest Territories of Canada. The Gahcho Kué joint venture consists of several kimberlites that are actively mined, developed and explored for future development. The Company also controls 107,373 hectares of highly prospective mineral resources and leases surrounding the Gahcho Kué Mine, which include Indicated Mineral Resources for the Kelvin Kimberlite and Inferred Mineral Resources for the Faraday Kimberlite. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/t and a price of US$63/carat. Faraday 2 is estimated to contain 5.45 million carats in 2.07 million t at a grade of 2.63 carats/t and a price of US$140/ct. Faraday 1-3 is estimated to contain 1.90 million carats in 1.87 million tonnes at a grade of 1.04 carats per tonne and a value of US$75 per carat. All resource estimates are based on the bottom face of a 1mm diamond.

For more information about Mountain Province Diamonds and to receive press releases by email, visit the company’s website at www.mountainprovince.com .

Caution Regarding Forward-Looking Information
This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian and United States securities laws relating to the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements regarding the ability to negotiate and enter into binding documentation, the ability to obtain the approval of parties, regulators and shareholders on terms acceptable to Mountain Province operational hazards, including potential disruptions due to a pandemic such as COVID-19, its impact on travel, self-isolation protocols, and business and operations, the project’s estimated production and mine life Mountain Province ; performing estimates of mineral reserves; timing and volume of estimated future production; production costs; the future price of diamonds; estimation of mineral reserves and resources; ability to manage responsibilities; capital expenditure; the possibility of obtaining permits for activities; liquidity; tax rates; and exchange rate fluctuations. With the exception of statements of historical facts concerning Mountain Province , certain information contained herein are forward-looking statements. Forward-looking statements are often qualified by words such as “anticipates,” “may,” “may,” “plans,” “estimates,” “estimates,” “expects,” “projects,” “goals,” “intends,” ” likely,” “will,” “should,” “be,” “potentially,” and other similar words, or statements that certain events or conditions “may,” “should,” or “will” occur. Forward-looking statements are based on management’s judgments and estimates as of the date they are made and are based on a number of assumptions and are subject to various risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements statements Many of these assumptions are based on factors and events beyond our control Mountain Province and there is no assurance that they will turn out to be correct.

Factors that could cause actual results to differ materially from those anticipated by such forward-looking statements include the parties’ negotiating positions, the ability to obtain regulatory, party and stockholder approvals, as may be required, on terms acceptable to the parties. , the development of operational hazards that may arise in connection with COVID-19, including, but not limited to, the protocols that may be adopted to reduce the spread of COVID-19, and any impact of such protocols on Mountain Province business and operations, changes in ore grade or recovery rate, changes in market conditions, changes in project parameters, mine sequencing; production standards; cash flow; risks related to the availability and timeliness of obtaining permits and government approvals; supply and demand for diamonds; fluctuations in commodity prices and currency exchange rates, the possibility of project cost overruns or unforeseen costs and expenses, labor disputes and other mining industry risks, failure of plant, equipment or processes to operate as expected.

These factors are discussed in more detail in Mountain Province in its most recent annual information form and in its most recent MD&A filed on SEDAR, which also make additional general assumptions in connection with these statements. Mountain Province cautions that the above list of important factors is not exhaustive. Investors and others relying on forward-looking statements should carefully consider the foregoing factors and the uncertainties they represent and the risks they involve. Mountain Province believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and such forward-looking statements included in this press release should not be overly relied upon. These statements are valid only as of the date of this news release.

Although Mountain Province attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements; other factors may exist that could cause actions, events or results not to be expected; assessed or assigned. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements relating to estimates of mineral reserves and resources may also be considered forward-looking statements to the extent they include estimates of mineralization that will occur when the property is developed. Mineral Resources are not Mineral Reserves and have no proven economic viability.

next, Mountain Province may make changes to its business plans that may affect its results. Fixed assets c Mountain Province are managed under a joint venture under which Mountain Province is not an operator. Mountain Province is affected by the actions or omissions of the operator within its prerogative and/or decisions made by the joint venture in accordance with its terms. Such actions or inactions may affect future performance Mountain Province . Under his current note and revolving credit facilities Mountain Province has certain limitations on its ability to pay dividends on its common stock. Declaration of dividends is discretionary Mountain Province The Board of Directors, taking into account the limitations on the company’s debt facilities, and will depend on Mountain Province financial results, cash requirements, future prospects and other factors that the Board deems important.

View original content: https://www.prnewswire.com/news-releases/mountain-province-diamonds-provides-further-information-regarding-planned-notes-refinancing-301661506.html

SOURCE Mountain Province Diamonds Inc.

Sisia View original content: http://www.newswire.ca/en/releases/archive/October2022/27/c2872.html


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