Mountain Province lenders extend waiver of cash reserve requirement

By Wendy Van Sickle

Columbus, Ohio, May 31 – Mountain Province Diamonds Inc. received a unanimous waiver from its loan facility lenders of its requirement to fund its cash call reserve account until Aug. 31, according to a press release.

Under the terms of the loan facility, the company was subject to maintaining a cash call reserve account balance of about $27.9 million as at March 31. The lenders had previously waived the requirement until May 31.

During the extension period, Mountain Province expects to provide the lenders an updated life of mine plan for the Gahcho Kue diamond mine from the operator, De Beers Canada, along with an updated financial model, further diamond pricing analysis and a fluorescence evaluation to be prepared by an external consultant.

The company said it continues to be in active discussions with its lending group to defer and realign the reserve account funding requirements to reflect current market conditions.

The diamond exploration and development company is based in Toronto.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.