Mountain Province completes syndication of $370 million term facility

By Tali Rackner

Norfolk, Va., March 26 – Mountain Province Diamonds Inc. completed the primary syndication of its previously announced $370 million term loan facility, according to a press release.

Drawdown against the facility is subject to funding of a cost overrun account, which is expected to be completed on the closing of the company’s C$95 million rights issue on March 30, the release said.

As previously reported, the company announced in July 2014 that it appointed three international banks to arrange and underwrite an up to $370 million senior secured term loan. The facility had been expected to be completed by year-end 2014.

The company intended to use the loan to fund its share of the construction cost of the Gahcho Kue diamond mine located in Canada’s Northwest Territories. Gahcho Kue is a joint venture between De Beers Canada Inc. (51%) and Mountain Province (49%).

According to chief executive officer Patrick Evans, the overall project development remains on schedule for first production in the second half of 2016 and continues within budget.

The diamond exploration and development company is based in Toronto.

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