TORONTO and NEW YORK, August 29,
2017 /PRNewswire/ --
Shares Issued and Outstanding: 160,236,833
TSX and NASDAQ: MPVD
Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and
NASDAQ: MPVD) announces that it has made good progress with the
participants in its loan facility on certain modifications to the
facility, and has received an extension of the waiver for the
funding of the remaining reserve accounts until November 30, 2017. Highlights of the
modifications that have been agreed to between the Company and its
lenders include (all amounts in US dollars):
- The Company will fund the Cash Call Reserve Account with a
balance of at least $25 million by
September 15, 2017.
- Recognizing the sufficiency of current cash flow generation,
the Company and its lenders have agreed to limit the utilization of
the facility 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 also do the
same with the upcoming September 2017
interest payment.
- As a condition of the waiver, an updated financial model and
life of mine plan are to be delivered by November 30, 2017.
Mountain Province Interim President and CEO David Whittle commented: "We are encouraged by
the positive progress made to date with our lending group, who have
been supportive of the Company and the Gahcho Kué Mine throughout
this process. Mine operations are performing well and are
delivering solid positive cash flows, factors which are obviously
helpful in the efforts to modify the loan facility. Working
with our joint venture partner, we are advancing well on the
finalization and approval of the life of mine plan optimization,
which is a key factor in the loan facility modification
process."
Mountain Province Diamonds is a 49% participant with
De Beers Canada in the Gahcho Kué diamond mine located in
Canada's Northwest
Territories. Gahcho Kué is the world's largest new diamond
mine and projected to produce an average of 4.5 million carats a
year over a 12-year mine life.
The Gahcho Kué Diamond Mine consists of a cluster of four
diamondiferous kimberlites, three of which are being developed and
mined under the current mine plan.
Forward-Looking Statements
Cautionary Statement: This news release contains
forward-looking statements under applicable Canadian
and US securities regulations and legislation in which
Mountain Province discusses its
potential future performance. Forward-looking
statements are all statements other than statements of historical
facts, such as projections or expectations relating to ore grades
and processing rates, production and sales volumes, cash costs,
operating cash flows, capital expenditures, debt management
initiatives, exploration efforts and results, development and
production activities and costs, liquidity, tax rates, the impact
of diamond price changes, reserve estimates, and future
dividend payments. The words "anticipates," "may,"
"can," "plans," "believes," "estimates," "expects," "projects,"
"targets," "intends," "likely," "will," "should," "to be",
"potential" and any similar expressions are intended to identify
those assertions as forward-looking statements. Under
its current project finance facility Mountain Province is not permitted to pay
dividends on common stock unless and until obligations under the
facility have been satisfied. The declaration of
dividends is at the discretion of Mountain Province's Board of Directors,
subject to restrictions under the Company's project finance
facility, and will depend on Mountain
Province's financial results, cash requirements, future
prospects, and other factors deemed relevant by the
Board.
Mountain Province cautions
readers that forward-looking statements are not guarantees of
future performance and actual results may differ materially from
those anticipated, projected or assumed in the forward-looking
statements. Important factors that can cause
Mountain Province's actual results
to differ materially from those anticipated in the forward-looking
statements include supply of and demand for, and prices of,
diamonds, mine commissioning, mining sequencing, production rates,
cash flow, industry risks, regulatory changes, political risks,
labor relations, weather- and climate-related risks, environmental
risks and other risk factors.
Investors are cautioned that many of the assumptions upon
which Mountain Province's
forward-looking statements are based are likely to change after the
forward-looking statements are made, including for example diamond
prices, which Mountain Province
cannot control, and production volumes and costs, some aspects of
which Mountain Province may not be
able to control. Further, Mountain Province may make changes to its
business plans that could affect its results.
Mountain Province
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
Mountain Province Diamonds Inc., David
Whittle, Interim President and CEO, 161 Bay Street, Suite
1410, Toronto, Ontario M5J 2S1,
Phone: +1(416)361-3562, E-mail: info@mountainprovince.com