Shares Issued and Outstanding: 106,039,522
NYSE MKT: MDM
Overall project on schedule: first production on target for H2 2016
Permitting on schedule: final permits on target for H2 2014
Debt funding on schedule: loan agreements on target for Q4 2014
TORONTO AND NEW YORK, June 13, 2014 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company")
(TSX: MPV, NYSE MKT: MDM) today announced that due to strong demand the
Company has increased the size of the previously announced non-brokered
private placement from C$35 million to approximately C$45 million. The
first tranche under the private placement closed on June 12, 2014, and
the second tranche is expected to close on or before June 20, 2014.
Common shares issued under the private placement have been priced at C$5
per share and are subject to a four month hold period.
The proceeds of the private placement will be used to support the
Company's share of ongoing capital expenditures at the Gahcho Kué
project and for general corporate purposes.
As at the end of May 2014 the overall project was progressing according
to plan and budget and first production remains on schedule for H2
2016. In addition, processing of the final Gahcho Kué Land Use Permit
and Class A Water License remains on schedule and these permits are
expected to be approved during H2 of 2014. Finally, Mountain Province
continues to progress project debt negotiations and expects to be able
to announce further details, including debt terms, by the end of July
and expects to be able to conclude definitive loan agreements by the
end of 2014.
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. 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 total diamond content of 55.5 million carats.
Gahcho Kué is the world's largest and richest new diamond development
project. A 2014 NI 43-101 feasibility study report filed by Mountain
Province (available on SEDAR) indicates that the Gahcho Kué project has
an IRR of 32.6%.
This news release may contain forward-looking statements, within the
meaning of the "safe-harbor" provision of the Private Securities
Litigation Reform Act of 1995, regarding the Company's business and/or
financial condition. Actual results could differ materially from those
described in this news release as a result of numerous factors, some of
which are outside the control of the Company.
SOURCE: Mountain Province Diamonds Inc.
For further information:
Mountain Province Diamonds Inc.
Patrick Evans, President and CEO
161 Bay Street, Suite 2315
Toronto, Ontario M5J 2S1
Phone: (416) 670-5114