Mountain Province lenders extend waiver of cash reserve requirement

By Wendy Van Sickle

Columbus, Ohio, Aug. 29 – Mountain Province Diamonds Inc. said it has received an extension until Nov. 30 of the waiver from its loan facility lenders of its requirement to fund its cash call reserve account, according to a press release.

The company also said it has made “good progress” with the lenders.

Some of the modifications that have been agreed to by the company and the lenders include the following:

• The company will fund the cash call reserve account with a balance of at least $25 million by Sept. 15;

• Use of the facility will be limited to the current outstanding principal balance of $357 million rather than the maximum facility amount of $370 million, other than with the consent of the lenders;

• Having made the June quarterly interest payment from cash flows rather than drawing from the facility, the company will do the same with the upcoming September 2017 interest payment;

• The company will deliver an updated financial model and life of mine plan by Nov. 30.

The diamond exploration and development company is based in Toronto.

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