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Mountain Province Diamonds Announces Completion of Refinancing Transactions

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Mountain Province Diamonds (TSX: MPVD) has successfully completed its previously announced refinancing transactions. The company has secured a US$20M bridge credit facility from Dunebridge Worldwide and received 100% approval from holders of its Second Lien Notes for restructuring.

Key aspects of the refinancing include addressing reclamation liabilities owed to De Beers (GK Mine operator), providing capital for the 2025 near cash flow deficit, and extending Second Lien Notes maturity to December 2027. The amended terms include deferring the next interest payment to June 15, 2026, with an increased interest rate of 9.6075% on the US$177 million outstanding notes.

The Toronto Stock Exchange has granted the company an exemption from disinterested security holder requirements, but consequently placed MPVD's common shares under delisting review, with continued listing not guaranteed.

Mountain Province Diamonds (TSX: MPVD) ha completato con successo le transazioni di rifinanziamento annunciate in precedenza. L'azienda ha ottenuto un prestito ponte di 20 milioni di dollari USA da Dunebridge Worldwide e ha ricevuto l'approvazione al 100% da parte dei detentori delle sue Second Lien Notes per la ristrutturazione.

Gli aspetti chiave del rifinanziamento includono la gestione delle passività di recupero dovute a De Beers (operatore della miniera GK), la fornitura di capitale per il deficit di flusso di cassa previsto per il 2025 e l'estensione della scadenza delle Second Lien Notes a dicembre 2027. I termini modificati prevedono il rinvio del prossimo pagamento degli interessi a 15 giugno 2026, con un tasso di interesse aumentato del 9,6075% sui 177 milioni di dollari USA di note in circolazione.

La Borsa di Toronto ha concesso all'azienda un'esenzione dai requisiti di detentori di titoli non interessati, ma ha conseguentemente posto le azioni ordinarie di MPVD sotto revisione per delisting, con la continuazione della quotazione non garantita.

Mountain Province Diamonds (TSX: MPVD) ha completado con éxito las transacciones de refinanciamiento previamente anunciadas. La compañía ha asegurado un préstamo puente de 20 millones de dólares estadounidenses de Dunebridge Worldwide y ha recibido la aprobación del 100% de los tenedores de sus Second Lien Notes para la reestructuración.

Los aspectos clave del refinanciamiento incluyen abordar las responsabilidades de reclamación adeudadas a De Beers (operador de la mina GK), proporcionar capital para el déficit de flujo de efectivo previsto para 2025 y extender el vencimiento de las Second Lien Notes a diciembre de 2027. Los términos enmendados incluyen el aplazamiento del próximo pago de intereses hasta 15 de junio de 2026, con una tasa de interés aumentada del 9.6075% sobre los 177 millones de dólares estadounidenses de notas pendientes.

La Bolsa de Valores de Toronto ha otorgado a la compañía una exención de los requisitos de tenedores de valores desinteresados, pero, en consecuencia, ha colocado las acciones ordinarias de MPVD bajo revisión para deslistado, sin garantía de continuación de la cotización.

마운틴 프로빈스 다이아몬드 (TSX: MPVD)는 이전에 발표된 재융자 거래를 성공적으로 완료했습니다. 이 회사는 Dunebridge Worldwide로부터 2천만 달러의 브릿지 신용 시설을 확보했으며, 재구성을 위해 Second Lien Notes 보유자들로부터 100% 승인을 받았습니다.

재융자의 주요 사항에는 GK 광산 운영자에게 지급해야 할 복구 책임 해결, 2025년 현금 흐름 적자를 위한 자본 제공, Second Lien Notes 만기 연장이 2027년 12월로 연장되는 것이 포함됩니다. 수정된 조건에는 다음 이자 지급을 2026년 6월 15일로 연기하고, 1억 7천7백만 달러의 미지급 노트에 대해 9.6075%의 증가된 이자율이 포함됩니다.

토론토 증권 거래소는 회사에 대해 비이해관계자 보유자 요구 사항에서 면제를 부여했으나, 그 결과 MPVD의 보통주를 상장 폐지 검토에 두었으며, 지속적인 상장이 보장되지 않습니다.

Mountain Province Diamonds (TSX: MPVD) a réussi à finaliser ses transactions de refinancement annoncées précédemment. L'entreprise a sécurisé un prêt relais de 20 millions de dollars US de Dunebridge Worldwide et a obtenu l'approbation à 100% des détenteurs de ses Second Lien Notes pour la restructuration.

Les principaux aspects du refinancement incluent la gestion des responsabilités de réclamation dues à De Beers (opérateur de la mine GK), la fourniture de capital pour le déficit de flux de trésorerie prévu en 2025, et l'extension de l'échéance des Second Lien Notes à décembre 2027. Les conditions modifiées incluent le report du prochain paiement d'intérêts au 15 juin 2026, avec un taux d'intérêt augmenté de 9,6075% sur les 177 millions de dollars US de notes en circulation.

La Bourse de Toronto a accordé à l'entreprise une exemption des exigences concernant les détenteurs de titres non intéressés, mais a par conséquent soumis les actions ordinaires de MPVD à un examen de délisting, sans garantie de maintien de la cotation.

Mountain Province Diamonds (TSX: MPVD) hat erfolgreich die zuvor angekündigten Refinanzierungstransaktionen abgeschlossen. Das Unternehmen hat eine Brückenfinanzierung in Höhe von 20 Millionen US-Dollar von Dunebridge Worldwide gesichert und erhielt eine 100%ige Genehmigung von den Inhabern seiner Second Lien Notes zur Umstrukturierung.

Wichtige Aspekte der Refinanzierung umfassen die Regelung von Rekultivierungsverbindlichkeiten gegenüber De Beers (Betriebsleiter der GK Mine), die Bereitstellung von Kapital für das voraussichtliche Liquiditätsdefizit 2025 und die Verlängerung der Fälligkeit der Second Lien Notes bis Dezember 2027. Die geänderten Bedingungen beinhalten die Verschiebung der nächsten Zinszahlung auf 15. Juni 2026, mit einem erhöhten Zinssatz von 9,6075% auf die ausstehenden Anleihen von 177 Millionen US-Dollar.

Die Toronto Stock Exchange hat dem Unternehmen eine Ausnahme von den Anforderungen an nicht interessierte Wertpapierinhaber gewährt, hat aber folglich die Stammaktien von MPVD einer Überprüfung auf Delisting unterzogen, wobei eine fortgesetzte Notierung nicht garantiert ist.

Positive
  • Secured US$20M bridge credit facility for immediate capital needs
  • 100% noteholder approval for refinancing received
  • Extended Second Lien Notes maturity from 2025 to December 2027
  • Strong support from major stakeholder Dermot Desmond
Negative
  • Company facing near cash flow deficit in 2025
  • Increased interest rate to 9.6075% on US$177M notes
  • Interest payments deferred until June 2026 indicating liquidity issues
  • Risk of TSX delisting following exemption review

TSX and OTC: MPVD

TORONTO and NEW YORK, March 19, 2025 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (TSX: MPVD) (OTC: MPVD) today announces the closing of the refinancing transactions (the "Refinancing Transactions") announced on February 25, 2025. Concurrently with the closing of the Refinancing Transactions, the Company has delivered a funding request for US$20M pursuant to the bridge credit facility agreement dated February 24, 2025 (the "Term Loan Agreement") with Dunebridge Worldwide Ltd. as administrative agent, security trustee and lender, and the guarantors named therein as announced on February 25, 2025.

Mark Wall, the Company's President and Chief Executive Officer, commented:

"The Company is pleased to have closed the Refinancing Transactions. These transactions serve to address the reclamation liabilities owed to De Beers as operator of the GK Mine, provide an immediate injection of capital to address the 2025 near cash flow deficit faced by the Company, and extend the term of the Second Lien Notes to December 2027, which were due to mature in December 2025.

I would like to reiterate my gratitude to Mr. Dermot Desmond who continues to be a stalwart supporter of the Company, the holders of the Second Lien Notes and De Beers for their continued support of Mountain Province throughout this process."

As set out in the Company's news release of February 25, 2025, the completion of certain aspects of the Refinancing Transactions was subject to the approval ("Noteholder Consent") of the holders of 90% aggregate principal amount of the 9.000% senior secured notes due December 15, 2025 of which USD$177 million aggregate principal amount is outstanding (the "Second Lien Notes").  The Company received approval of 100% of the aggregate principal amount of the Second Lien Notes] prior to closing and, at closing of the Refinancing Transactions, entered into an amended and restated indenture with the guarantors named therein and Computershare Trust Company N.A., as trustee and collateral agent (the "Amended and Restated Indenture"), on the terms set out in its news release of February 25, 2025, except that in lieu of the election to defer interest payments in 2025 on the terms described therein, the next interest payment date was deferred to June 15, 2026 and the rate of interest applicable on the Second Lien Notes during the deferred interest period was increased to 9.6075%.

Other than in respect of the interest deferral in 2025 described above, please refer to the Company's news release of February 25, 2025 for a description of the Refinancing Transactions.

In addition, as previously announced, the Company applied to the Toronto Stock Exchange (the "TSX") for an exemption (the "Exemption") pursuant to section 604(e) of the TSX Company Manual from the disinterested security holder requirements of the TSX that would otherwise be applicable to certain of the Refinancing Transactions. Subject to the satisfaction of routine filings, the Company's application has been accepted by the TSX.  As a consequence of the Exemption, the TSX has placed the Company's listing of its Common Shares under delisting review, which is a customary practice when a listed issuer makes an application under Section 604(e) of the TSX Company Manual for an exemption from the security holder approval requirements of the TSX. No assurance can be provided as to the outcome of such a review and therefore continued qualification for listing of the Common Shares on the TSX is not guaranteed. 

About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% participant with De Beers in the GK Mine located in Canada's Northwest Territories. The Gahcho Kué joint venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 96,000 hectares of highly prospective mineral claims and leases surrounding the GK Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.

For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at www.mountainprovince.com.

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, the terms of the Refinancing Transactions; the anticipated benefits of the Refinancing Transactions to allow the Company to continue as a going concern and to meet its obligations under the joint venture and in respect of its existing indebtedness; outcome of TSX's remedial delisting review of the Common Shares of the Company. 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 the ability to secure an additional working capital facility; outcome of TSX's delisting review of the Common Shares of the Company and future plans, development and operations of the Company; the development of operation hazards; 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; competition within the mining industry; 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; and 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. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

Cision View original content:https://www.prnewswire.com/news-releases/mountain-province-diamonds-announces-completion-of-refinancing-transactions-302405330.html

SOURCE Mountain Province Diamonds Inc.

FAQ

What are the key terms of Mountain Province Diamonds' (MPVDF) refinancing transaction in 2025?

The refinancing includes a US$20M bridge facility, extension of US$177M Second Lien Notes to December 2027, and interest payment deferral to June 2026 at 9.6075%.

Why is Mountain Province Diamonds (MPVDF) under TSX delisting review in March 2025?

MPVDF is under review following their exemption request from TSX security holder requirements for refinancing transactions, a standard practice for such exemptions.

When is the next interest payment due for MPVDF's Second Lien Notes after refinancing?

The next interest payment has been deferred to June 15, 2026, with an increased interest rate of 9.6075%.

What is the current outstanding amount of MPVDF's Second Lien Notes in 2025?

Mountain Province Diamonds has US$177 million in outstanding Second Lien Notes.
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