#Canada #Toronto #Mountain Province #Diamonds #Dunebridge

Mountain Province Diamonds Updates Its Working Capital Facility

Mountain Province Diamonds Inc. has recently announced a significant amendment to its working capital facility (WCF), aimed at enhancing the company's liquidity and operational flexibility amid current financial challenges. This amended agreement involves the Canadian financial firm Dunebridge Worldwide Ltd., which serves as the lender and administrative agent for the company's financial arrangements.

Key Amendments to the Working Capital Facility

Under the newly established Amending Agreement, the WCF amount of CAD 33,000,000 will see several critical adjustments:
1. Extended Draw Period: The timeframe during which Mountain Province can draw funds has been extended from November 13, 2025, to March 31, 2026, granting the company additional time to access necessary funds.
2. Deferment of Repayment Mechanics: The repayment mechanics involving direct payments from diamond sales proceeds will now commence after February 28, 2026, providing further breathing room for the company's cash flow.
3. Extended Principal Repayment Date: The date for repayment of the WCF's principal amount has been postponed from December 31, 2025, to March 31, 2026.

Mark Wall, the President and CEO of Mountain Province, expressed gratitude for Dunebridge's ongoing support, stating that these amendments will improve the company's financial position just as they are anticipated to begin recognizing sales from higher-grade materials from the NEX ore body. This adjustment comes as an essential step in facilitating the company's recovery and operational stability.

Oversight and Approval

The decision to amend the WCF was considered and analyzed by a special committee of independent directors within the board of Mountain Province. This committee was also responsible for examining previous refinancing efforts. Upon thorough review, the committee recommended approval of the amendments in light of the company's financial status.

The board unanimously endorsed the special committee's recommendations. However, two directors, Jonathan Comerford and Brett Desmond, recused themselves due to declared conflicts of interest.

Related Party Transaction Considerations

It's crucial to note that this amendment constitutes a related party transaction since both Dunebridge and the beneficial owner of Vertigol Unlimited Company, Dermot Desmond, are interconnected. Vertigol possesses over 35% of Mountain Province's shares, which brings this agreement under the scrutiny of regulatory requirements concerning minority shareholder protection. The company is leveraging exemptions due to its current financial difficulties and the necessity imposed by its operational context.

About Mountain Province Diamonds Inc.

Mountain Province is a prominent player in the mining sector, holding a 49% stake in the Gahcho Kué mine, operated in conjunction with De Beers in Canada’s Northwest Territories. The project consists of various kimberlite mines under active development, exploration, and production. Additionally, Mountain Province maintains extensive mineral claims and leases surrounding the Gahcho Kué site.

As part of its strategy, the company is focused on enhancing its operational output and tackling financial challenges head-on. This recent amendment indicates not only an immediate lifeline but also a proactive approach to securing the future of Mountain Province.

For further information about Mountain Province and recent developments, visit their official website at Mountain Province.