Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NY SE MKT : MDM) has announced a secured term loan facility of up to $370 Million to fund their share of the Gahcho Kué diamond mine, located in Canada’s Northwest Territories. Construction costs Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué JV located at Kennady Lake in Canada’s Northwest Territories.
Three international banks have been appointed, Deutsche Bank A.G., acting through its London Branch, NatixisS.A. and Nedbank Limited.
According to a Mountain Province Diamonds Press Release, the Gahcho Kué Project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 35.4 million tonnes grading 1.57 carats per tonne for a total diamond content of 55.5 million carats.
The loan facility is subject to the usual due diligence provisions but it is not expect that there will be any issue and the loan facility documentation should be completed before the end of 2014.
Mountain Province has stated that as ‘at the end of June 2014, the overall project was progressing according to plan and remains on schedule for first production during H2 2016.’ They are currently funding their share of the capital costs with equity and have also arranged sufficient equity to fund planned capital commitments through to the end of 2014.