Mountain Province Diamonds Prepares Shareholders for Upcoming Virtual Meeting on Funding Approval

Mountain Province Diamonds Inc. has announced that it has sent out materials related to the upcoming annual and special meeting of shareholders. This meeting, scheduled for May 16, 2025, will discuss several key agenda items, including the approval of a new working capital facility necessary for the company's operations.

Meeting Details

The virtual meeting will take place at 11:00 a.m. EST and will be accessible on the company's official website. Shareholders are encouraged to review the mailed documents, including a notice of the meeting, management information circular, and related documents. For those unable to attend, provisions for proxy voting are available.

Agenda Items

At this meeting, shareholders will vote on several important matters:
1. The election of directors.
2. The approval of financial statements.
3. The appointment of auditors.
4. An ordinary resolution regarding the proposed working capital facility (WCF) from Dunebridge Worldwide Ltd.

The WCF is proposed at CAD 33 million, targeting the company's cash flow needs through 2025 at projected diamond prices, specifically to cover immediate operational expenses at the Gahcho Kué diamond mine in the Northwest Territories, where Mountain Province holds a 49% interest.

Company Insights

Mark Wall, President and CEO of Mountain Province, expressed gratitude for the support from Dermot Desmond, who is connected to Dunebridge, emphasizing the importance of this financial instrument in securing the company’s operational cash flow.

Proposed Working Capital Facility Terms

The WCF has been set up based on a non-binding term sheet that allows Mountain Province to draw funds over a six-month period starting on May 16, 2025, with a maturity date set for June 30, 2026. Interest rates will be as follows:

- 10.5% payable on drawn amounts.
- 7% on undrawn amounts as commitment fees.

This facility will incur a one-time cash facility fee of USD 1 million, payable upon maturity. The minimum initial draw is USD 10 million, and there are provisions for revolving borrowing. During the debt’s term, proceeds from diamond sales will be directed to Dunebridge until the outstanding principal amount is repaid.

Insider Participation

The meeting also requires the participation of disinterested shareholders since a significant portion of the proposed WCF involves insiders, notably Mr. Dermot Desmond, who controls a substantial shareholding in the company. Legal protocols to ensure fairness for all shareholders have been established.

Approval Processes

Approval from disinterested shareholders is crucial, and a simple majority at the meeting will be needed for the WCF to proceed, excluding votes connected to certain parties involved.

Final Thoughts

The outcome of this meeting holds substantial implications for Mountain Province Diamonds' operational strategy and future growth. Shareholders are urged to take an active role in this crucial vote that will support the company’s ongoing projects and broader financial health. For more information and to access meeting materials, shareholders are directed to visit Mountain Province Diamonds’ website. This has been a detailed overview of the upcoming shareholder meeting agenda and the strategic steps the company is taking towards securing its financial future.