Diamond Slump: Mountain Province Borrows Another $10m
July 28, 25
(IDEX Online) - Canadian miner Mountain Province Diamonds is borrowing an additional $10m to manage ongoing cash flow difficulties, it announced today (29 July).
As weakened demand persists, it is being forced to increase credit facilities to meet working capital needs. The company is also seeking longer-term financing solutions.
Mountain Province has amended an existing bridge credit facility with Dunebridge Worldwide Ltd., an investment vehicle that is owned by Irish billionaire Dermot Desmond, and that controls 32 per cent of the company.
In February 2025, Mountain Province entered the facility for $30m with the option for a further $10m to be made available at Dunebridge's discretion.
The total facility is now $40m and matures next March, bearing 10.5 per cent interest annually (increasing to 12.5 per cent if unpaid at maturity), plus a $1m facility fee.
In today's update Mountain Province said it had "entered into an amendment to the amended and restated bridge credit facility agreement with Dunebridge to increase such the size of the bridge term facility under that agreement by US$10 million from US$30 million to US$40 million."
Mountain Province, which owns 49% of the Gahcho Kue mine (De Beers holds 51%), posted a Q1 net loss of $24.8m on revenue nearly halved from the previous year.
Pic of Gahcho Kue mine, Canada.