Mountain Province taps three banks to arrange $370 million term loan

By Marisa Wong

Madison, Wis., July 28 – Mountain Province Diamonds Inc. has appointed three international banks to arrange and underwrite a senior secured term loan facility of up to $370 million, according to a press release.

Mountain Province has mandated Deutsche Bank AG, London Branch, Natixis SA and Nedbank Ltd. as the lead arrangers.

The company will use the term loan facility to fund its share of the construction cost of the Gahcho Kue diamond mine located in Canada’s Northwest Territories. Gahcho Kue is a joint venture between De Beers Canada Inc. (51%) and Mountain Province (49%).

The facility is expected to be completed, subject to due diligence and internal bank approvals, by year-end.

As of the end of June, the overall project was progressing according to plan and remains on schedule for first production during the second half of 2016. Mountain Province is funding its share of the capital with equity and has arranged sufficient equity to fund planned capital commitments through to the end of 2014, the release noted.

The diamond exploration and development company is based in Toronto.

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