Industria
Mountain Province Diamonds Announces CAD$33 Million Working Capital Facility
The terms of the WCF reflect the indicative terms set out in the non-binding term sheet entered into with Dunebridge on April 17, 2025 as described in the Company's notice of meeting and management information circular dated April 17, 2025 (the " ") and in the Company's news release dated April 25, 2025 , which are both available on SEDAR+ on the Company's profile at www.sedarplus.ca and on the Company's website at www.mountainprovince.com.
As also disclosed in the Company's news release of February 19, 2025 , the WCF is a key component of the Company's funding solution for 2025. However, as described in detail in the Company's Notice of Meeting and Information Circular, the terms of the WCF were not settled until April 17, 2025 and as such did not form part of the suite of refinancing transactions announced and completed on February 24, 2025 and March 18, 2025 , respectively, making it subject to the shareholder approval described herein.
Due to immediate working capital needs, the Company issued a funding request under the WCF to Dunebridge for an initial draw down of USD7,000,000 (the " ").
Dunebridge is a "related party" of the Company, for the purposes of MI 61-101 and the entering into of the A&R Bridge Facility Agreement is considered a related party transaction for the purposes of Multilateral Instrument 61-101 – (" "). The Initial Draw Down is being completed pursuant to an exemption from the minority shareholder approval requirements applicable to a related party transaction under section 5.7(1)(e) of MI 61-101 on the grounds that the Company is in serious financial difficulty, and that the board of directors of the Company, acting in good faith, and all of the Company's independent directors, acting in good faith, have determined that entering into the A&R Bridge Facility Agreement, generally, and the Initial Draw Down, in particular, is reasonable given the financial difficulties that the Company is facing (the " ").
The WCF (including the Initial Draw Down) has been conditionally approved by the Toronto Stock exchange (the " "). Further, as previously disclosed, Dunebridge is also an insider of the Company under the rules of the TSX.
On the basis that the WCF (including the Initial Draw Down) involves insiders or other related parties of the Company but does not involve the issuance or potential issuance of the listed securities of the Company, MPD applied for, and has received, the TSX's conditional approval for the WCF and the Initial Draw Down under Section 501(c) of the TSX Company Manual.
The TSX provided conditional approval to the Initial Draw Down on the basis that the value of the consideration to insiders in respect of the Initial Draw Down will not exceed 10% of the Company's market capitalization as of May 13, 2025 , being approximately CAD1,487,000 .
The TSX provided conditional approval to the balance of the WCF, on the condition (among other routine matters) that the Company obtain disinterested shareholder approval pursuant to the rules of the TSX.
The Company will proceed to seek that approval at the upcoming annual and special meeting of shareholders to be held virtually on May 16, 2025 at 11:00 a.m. EST (the " ") together with – in the interest of good corporate governance – the approval of the "majority of the minority" shareholders under the MI 61-101 Exemption.
Detailed instructions on how to participate, vote and ask questions at the Meeting are included in Notice of Meeting and Information Circular and related materials.
The value of the consideration to insiders with respect to the Initial Draw Down is an estimated CAD1,088,674 as of May 13, 2025 or 7.3% of the market capitalization of the Company discussed above. Such consideration reflects the interest consideration payable on the Initial Draw Down and the pro rata portion of the WCF facility fee payable in maturity in connection with the Initial Draw Down.
The value of the consideration to insiders with respect to the WCF (including the Initial Draw Down), if approved by shareholders at the Meeting, is an estimated CAD3,671,189 as of May 13, 2025 or 24.6% of the market capitalization of the Company. Such consideration reflects the interest payable on the WCF and the entire WCF facility fee, which is payable at maturity.
In addition, as previously announced on February 25, 2025 , the Company applied to the TSX for an exemption (the " ") pursuant to section 604(e) of the TSX Company Manual from the disinterested security holder requirements of the TSX that would otherwise be applicable to certain of the Refinancing Transactions announced therein.
As a consequence of the 604(e) Exemption, the TSX has placed the Company's listing of its Common Shares under delisting review, which is a customary practice when a listed issuer makes an application under Section 604(e) of the TSX Company Manual for an exemption from the security holder approval requirements of the TSX.
The TSX has subsequently notified the Company that a meeting of the Continued Listing Committee of the TSX is scheduled to be held on June 20, 2025 to consider whether or not to suspend trading in and delist the securities of the Company. The Company can make submissions regarding this matter at such hearing on or before noon on June 13, 2025 The Company intends to make submissions however no assurance can be provided as to the outcome of such a review and therefore continued qualification for listing of the Common Shares on the TSX is not guaranteed.
Mountain Province is a 49% participant with De Beers in the GK Mine located in Canada's Northwest Territories . The Gahcho Kué joint venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 96,000 hectares of highly prospective mineral claims and leases surrounding the GK Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.
For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at www.mountainprovince.com.
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