TORONTO and NEW YORK, March 16,
2018 /PRNewswire/ --
Shares Issued and Outstanding: 160,253,501
TSX and NASDAQ: MPVD
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.
Contact:
Mountain Province Diamonds Inc.
David Whittle, Interim President and
CEO
161 Bay Street, Suite 1410,
Toronto, Ontario M5J 2S1
Phone: (416)361-3562
E-mail: info@mountainprovince.com