Mountain Province Diamonds nearer to closing $370 million term loan

By Marisa Wong

Madison, Wis., Jan. 8 – Mountain Province Diamonds Inc. announced it is progressing with the arrangement of its previously announced $370 million term loan facility.

Finalization is still subject to customary conditions, including final credit approval and agreement on facility documentation, which is expected shortly, the company said in a press release on Thursday.

The facility was expected to be completed by year-end 2014, as previously reported.

The company had announced last July that it appointed three international banks to arrange and underwrite an up to $370 million senior secured term loan.

Deutsche Bank AG, London Branch, Natixis SA and Nedbank Ltd. are the mandated lead arrangers.

The company intended to use the loan 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%).

As of the end of June 2014, the overall project was progressing according to plan and remained 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, a prior release noted.

The diamond exploration and development company is based in Toronto.

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