Shares Issued and Outstanding: 160,253,501
TSX and
NASDAQ: MPVD
TORONTO and NEW YORK, March 16,
2018 /CNW/ - Mountain Province Diamonds Inc. ("Mountain
Province", the "Company") (TSX and NASDAQ: MPVD) today announces it
has signed a non-binding memorandum of understanding ("MoU") with
its partner in the Gahcho Kué mine, De Beers Canada Inc. ("De
Beers").
The MoU contemplates incorporating properties owned by Kennady
Diamonds Inc. ("Kennady Diamonds") into the Gahcho Kué joint
venture, in the event that Mountain
Province's proposed acquisition of Kennady Diamonds is
approved. Mountain Province
and De Beers will now work towards a definitive agreement based on
the MoU.
Kim Truter, Chief Executive –
Canada, De Beers Group, said, "We
have been very pleased with the progress of our partnership with
Mountain Province in the Gahcho
Kué mine. Their proposed acquisition of Kennady Diamonds
opens up some potential new options for the operation's future, and
while further work would be required on the resource and there
would need to be agreement on commercial terms, the signing of this
non-binding MoU makes sense for both parties as we consider how our
partnership might develop."
David Whittle, Interim President
and Chief Executive Officer of Mountain
Province, said, "The start up of the Gahcho Kué mine under
De Beers' operatorship has been a clear success, and the positive
working relationship that exists between the joint venture partners
is a key component of that success. Mountain Province firmly believes that the
proposed Kennady Diamonds transaction can add significant project
value through the potential to access Kennady Diamond's kimberlite resources. We
look forward to working with De Beers in the effort to develop a
plan to integrate the Kennady Diamonds resources into the Gahcho
Kué project."
Kennady Diamonds owns 100% of the Kennady North diamond project
located in Canada's Northwest Territories, immediately adjacent to
the Gahcho Kué mine. Kennady is focused on expanding its
high-grade diamond resources along the Kelvin-Faraday kimberlite
corridor, as well as identifying new kimberlites outside of the
corridor. Kennady reports that to date, an indicated resource
of 13.62 million carats of diamonds contained in 8.50 million
tonnes of kimberlite, with a grade of 1.60 carats per tonne and an
average value of US$63 per carat, has
been defined for the Kelvin kimberlite and an inferred resource of
5.02 million carats contained in 3.27 million tonnes of kimberlite,
with a grade of 1.54 carats per tonne and an average value of
US$98 per carat, has been defined for
the Faraday kimberlites using a 1mm bottom cutoff size. The
Kelvin–Faraday corridor is also a target for further
exploration.
****
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, consisting of a
cluster of four diamondiferous kimberlites, three of which are
being developed and mined under the initial 12 year mine plan.
Qualified Person
The disclosure in this news release
of scientific and technical information regarding Mountain Province's mineral properties has
been reviewed and approved by Keyvan
Salehi, P.Eng., MBA, a Qualified Person as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects. For further information on the mineral
properties of Kennady Diamonds as discussed above please see: (i)
technical report titled "Project Exploration Update and Faraday
Inferred Mineral Resource Estimate, Kennady North Project,
Northwest Territories, Canada"
dated effective November 16, 2017;
and (ii) technical report titled "Project Exploration Update and
Maiden Resource Estimate, Kennady North Project, Northwest Territories, Canada" and dated
effective January 24, 2017.
Caution Regarding Forward Looking
Information
This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian and United
States securities laws concerning the business, operations
and financial performance and condition of Mountain Province
Diamonds Inc. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and mine life of the project of
Mountain Province; the realization
of mineral reserve estimates; the timing and amount of estimated
future production; costs of production; the future price of
diamonds; the estimation of mineral reserves and resources; the
ability to manage debt; capital expenditures; the ability to obtain
permits for operations; liquidity; tax rates; and currency exchange
rate fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking
statements. Many of these assumptions are based on factors
and events that are not within the control of Mountain Province and there is no assurance
they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Mountain
Province believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the
date of this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements.
Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the mineralization that will be
encountered as the property is developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province. Under its current note and revolving
credit facilities Mountain
Province is subject to certain limitations on its ability to
pay dividends on common stock. The declaration of dividends
is at the discretion of Mountain
Province's Board of Directors, subject to the limitations
under the Company's debt facilities, and will depend on
Mountain Province's financial
results, cash requirements, future prospects, and other factors
deemed relevant by the Board.
SOURCE Mountain Province Diamonds Inc.