Mountain Province Diamonds Reports on Latest Developments and Strategic Decisions

Mountain Province Diamonds Inc. recently shared pivotal updates regarding its corporate structure, joint ventures, and ongoing operational strategies in light of current market conditions. The company, which holds a 49% interest in the Gahcho Kué Mine in Canada’s Northwest Territories, aims to navigate the challenges presented by a protracted slump in the diamond sector effectively.

Management Changes

Following the departure of former CEO Mark Wall, the company’s Board has opted not to fill the position immediately. Instead, Jonathan Comerford, previously the Chairman of the Board, has stepped in as the acting President and CEO. This decision aligns with the company's ongoing cost-saving initiatives while maintaining stability during this transition period.

Pausing the Tuzo Phase 3 Project

In a significant move, Mountain Province Diamonds and its joint venture partner, De Beers Canada Inc., have decided to put the Tuzo Phase 3 project on hold. This decision stems from a focused evaluation of the project's financial viability against the backdrop of the prevailing market forces. Although the Tuzo Phase 3 project holds substantial promise for the future, the partners deemed a cautious approach necessary at this juncture.

While the suspension of Tuzo Phase 3 does not threaten carat production for 2026, the company's current operations will prioritize the extraction of diamonds from the high-grade NEX pipe. The firm is set to release its Quarter 4 production and sales figures shortly, along with guidance for the upcoming year.

Joint Venture Developments

The ongoing relationship with De Beers also revealed certain financial obligations through the receipt of three in-kind election notices under the joint venture agreement. This entailed a significant cash call amounting to CAD$49.17 million. It’s important to note that although receipt of these notices does not classify as a default, failure to address the outstanding amount within a stipulated timeframe could lead to serious consequences, including a declaration of default under existing debts.

Mountain Province anticipates that diamond sales will generate sufficient proceeds to satisfy upcoming cash obligations due in mid-March 2026. The company continues to engage in discussions with De Beers to explore avenues to mitigate costs associated with the joint venture without compromising value for stakeholders.

Update on Facility Fee Approval

An extension has also been granted for shareholder approval regarding a facility fee related to a US$10 million increase to its bridge term financing with Dunebridge Worldwide Ltd. Originally set to be approved by January 25, 2026, this timeline has now been pushed to June 30, 2026, allowing ample time for stakeholders to make informed decisions.

A Word from Management

Jonathan Comerford commented on the current situation, stating, “The challenges currently facing the Company primarily reflect the market's ongoing weakness in the diamond sector. Our main focus is on prudent cost management and ensuring liquidity to support the long-term viability of our operations. We are collaborating closely with De Beers to address the ongoing financial issues and explore opportunities to enhance our operational efficiency.”

Commitment to Sustainable Operations

Mountain Province Diamonds, through its partnership with De Beers, plays a pivotal role in the mining landscape of Canada. The Gahcho Kué Mine is not only significant for its current production but also holds potential for future developments. With over 96,000 hectares of mineral claims and leases, the company is well-positioned to exploit its resources while maintaining a downward pressure on costs, thereby fostering sustainable mining practices in the region.

As Mountain Province Diamonds navigates these changes and market challenges, its commitment to operational excellence remains unwavering. Stakeholders can stay informed about the company’s progress and updates through its official website.

For more information, visit Mountain Province's website.