Mountain Province Extends Loan Repayment Terms
November 19, 25
(IDEX Online) - Troubled Canadian miner Mountain Province Diamonds has extended the repayment terms on a CAD 33m (USD 23.4m) short-term loan it took to see it through ongoing cash flow difficulties.
The company announced details in February 2025 of a Working Capital Facility (WCF) with Dunebridge Worldwide Ltd., an investment vehicle that is owned by Irish billionaire Dermot Desmond, and that controls 32 per cent of the company.
Amended terms relating to that WCF will allow Mountain Province to extend the deadlines for drawing funds, repaying the principal and repaying Dunebridge from the proceeds of its diamond sales.
Mark Wall, outgoing president and CEO at Mountain Province, said in an update yesterday (18 November): "The amendments to the WCF allow the Company access to additional funds in this crucial period before its working capital is expected to improve once it starts to realize on the sales of the higher grade material from its NEX ore body.
"It almost goes without saying that we are grateful for the continued support of Dunebridge."
Mountain Province is in a vulnerable financial position. It reported a net loss CAD 55.9m (USD 40m) for Q3, together with the departure of Mark Wall, its president and CEO.
Mountain Province is a 49 per cent participant with De Beers in the Gahcho Kue mmine, located in Canada's Northwest Territories.