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Mountain Province Diamonds Secures Additional US$10 Million in Borrowings

Mountain Province Diamonds Inc., a prominent player in the diamond mining industry, has made significant strides in securing additional funding crucial for its operations. The company has announced an increase of US$10 million in its bridge credit facility with Dunebridge Worldwide Ltd. This decision is not only a testament to the company’s proactive approach but also highlights its commitment to ensuring stability during financially turbulent times.

Details of the Additional Bridge Facility

On July 28, 2025, Mountain Province Diamonds revealed that it amended its existing bridge credit facility, raising the total available funds from US$30 million to US$40 million. This move comes in the wake of a series of financial challenges faced by the company. Originally, the agreement was established on February 24, 2025, and was subsequently revamped on May 13, 2024, to encompass a US$33 million working capital facility.

The newly available US$10 million, termed the Additional Bridge Term Facility, will be accessible to Mountain Province at Dunebridge’s discretion and on mutually agreed terms. The maturity date for this additional loan aligns with that of the original facility—set for March 18, 2026. Both the original and additional facilities carry an interest rate of 10.5% per annum, which will compound quarterly, with the possibility of escalation to 12.5% should the loans not be repaid by maturity.

As part of this arrangement, Mountain Province will also pay a US$1 million facility fee upon maturity of the additional funds, which is subject to approval from disinterested shareholders. This stipulation is essential for ensuring compliance with the regulatory requirements of the TSX Company Manual. In instances where shareholder approval is not forthcoming, or if the company opts for an alternative listing on the TSX Venture Exchange before January 25, 2026—inherent risks emerge, including the potential breach of this agreement.

Navigating Financial Difficulties

The approval process for this amendment has been marked by scrutiny due to its classification as a related party transaction. Dunebridge is recognized as a related party, compelling Mountain Province to operate under the guidelines provided by Multilateral Instrument 61-101 for the protection of minority security holders. The board’s determination to pursue this amendment reflects an understanding of the pressing financial difficulties the company is experiencing.

To facilitate the approval process, Mountain Province secured a conditional nod from the TSX, particularly significant given that the transaction does not entail issuing further securities. The TSX's acceptance hinged on the value of compensation to insiders—not exceeding 10% of the company's market capitalization as valued on the day of the announcement.

Strategic Outlook Moving Forward

The additional funding positions Mountain Province Diamonds favorably to address ongoing operational challenges and bolster its market position. As a 49% participant in the Gahcho Kué mine alongside De Beers Canada Inc., the company is navigating a landscape marked by capital constraints but remains focused on future opportunities.

The Gahcho Kué mine continues to be a focal point for development, with significant reserves that include both kimberlite mining and future exploration projects planned over the surrounding 96,000 hectares of highly prospective mineral claims.

Considering the volatility in the diamond market and the company's admission of financial challenges, this recent amendment indicates a strategic pivot that could prove beneficial for long-term sustainability. Analysts and investors will definitely keep a close eye on operational efficiencies and market changes in response to this financial augmentation.

For those interested in ongoing updates about Mountain Province Diamonds, visit their website or subscribe to their news releases to stay informed on upcoming developments.

Conclusion

As the company looks ahead, the additional US$10 million in borrowing enhances its financial capabilities. While uncertainties remain, Mountain Province's actions signal resilience in navigating through the industry's challenges, striving for operational success, and positioning itself for growth in the competitive diamond mining market.