TSX and OTC: MPVD
toronto and New York, November 21, 2022 /PRNewswire/ – Mountain Province Diamonds Inc. (“Mountain Province” or “Company”) (Toronto Stock Exchange: MPVD) (OTC symbol: MPVD) announced today that it has published amendments to its Management Information Circular, dated October 28, 2022 (“Circular”) in relation to the scheduled Extraordinary General Meeting December 1, 2022 (“Special Session”).To give shareholders additional time to review and consider the revised circular, the Company intends to adjourn the special meeting until December 12, 2022 10:00 amMeter. Eastern Time.
As disclosed in the company press release October 27, 2022at the special meeting, the company will seek approval involving the issuance of approximately $195.9 million The aggregate principal amount of the New Senior Secured Second Lien Loan Note (“New Loan Note”) is approximately $190 million The Company’s existing 8,000% senior secured second lien notes due 2022 (the “Existing Notes”).
The revised Circular is issued to inform Shareholders that, in relation to the Proposed Transaction, the interest rate on the Junior Credit Facility (as defined in the Circular) has changed from December 15, 2022 Need clarification. Mountain Province Clarifies Its Agreement to Issue New Loan Notes, a Shareholder-Approved Junior Credit Facility February 28, 2022 The APR thereafter is 14% December 15, 2022a premium of 2% over the guaranteed minimum gross yield of 12% on the new loan notes.
Because the new loan notes were issued at a discount to par and included an adjustment mechanism, their effective interest rate was 12%. Applying the adjustment mechanism and coupon rate to the primary credit facility and maintaining the expected 2% interest rate premium on the subprime primary credit facility debt resulted in an effective interest rate of 14%.
The lender under the primary credit facility is the ultimate beneficially owned entity Dermot Desmond. In addition, investors in the new loan notes include the ultimate beneficially owned entities. Desmond. Due to the involvement of entities ultimately beneficially owned by Mr. Desmond, the proposed transaction is subject to approval by the Toronto Stock Exchange (“TSX”) and approval by the Company’s disinterested shareholders pursuant to Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions and the rules of the TSX. The proposed transaction is also subject to the execution of final documents and the aforementioned approvals. There can be no assurance that the proposed transaction will be completed on the terms described herein or at all.
The company’s board of directors has determined 10:00 AM ET superior November 29, 2022or not later than 48 hours (excluding Saturdays, Sundays and holidays) prior to any adjourned meeting, the time before which proxy for use or action at the meeting or any adjourned meeting shall be deposited with the transfer agent of the company. In view of the above The proposed adjournment is expected to deliver the agency for use or action at the adjournment of 10:00 AM ET superior December 8, 2022.
The circular is available on the Company’s SEDAR page at www.carder.com.
About Mountain Province Diamonds Inc.
Mountain Province Diamonds owns 49% of De Beers Canada in the Gahcho Kué diamond mine in Canada’s Northwest Territories. The Gahcho Kué Joint Venture property consists of multiple kimberlites that are being actively mined, developed and explored for future development. The company also controls 107,373 hectares of high-prospect mineral rights and leases surrounding the Gahcho Kué mine, which include Indicated Mineral Resources in the Kelvin kimberlite and Inferred Mineral Resources in the Faraday kimberlite. The Kelvin diamonds are estimated to contain 13.62 million carats (Mct) in 8.5 million tonnes (Mt) at a grade of 1.60 ct/t for a value of $63/ct. Faraday 2 was estimated to contain 5.45 megacarats in 2.07 tonnes at a grade of 2.63 carats/t for a value of $140/ct. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/t for a value of $75/ct. All resource estimates are based on a 1mm diamond size bottom boundary.
For more information about Mountain Province Diamonds and to receive news releases by email, visit the company’s Web site at www.mountainprovince.com.
Caution Regarding Forward-Looking Information
This press release contains applicable Canadian and U.S. Securities Laws Regarding Mountain Province Diamonds Inc.’s Business, Operating and Financial Results and Condition.Forward-looking statements and forward-looking information include, but are not limited to, statements regarding our ability to negotiate and enter into binding documents and to obtain approval from parties, regulators and shareholders on acceptable terms mountain provinceoperational hazards, including possible disruptions due to a pandemic such as COVID-19, its impact on travel, self-isolation protocols, and business and operations, the estimated production and mine life of the project mountain province; realization of mineral reserve estimates; timing and volume of expected future production; production costs; future price of diamonds; estimates of mineral reserves and resources; ability to manage debt; capital expenditures; ability to obtain operating licenses; liquidity; tax rates; and currency exchange rate fluctuations.In addition to statements of historical fact mountain province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are often characterized by words such as “expects,” “may,” “could,” “plans,” “believes,” “estimates,” “anticipates,” “projects,” “objective,” “intends,” and “may”, “will”, “should”, “will be”, “potential” and other similar words, or statements that certain events or conditions “may”, “should” or “will” occur. Forward-looking statements are based on management’s opinions and estimates as of the date the statements are made, are based on a number of assumptions and are subject to various risks and uncertainties and other factors that could cause actual events or results to differ materially from the projections contained in the forward-looking statements. .Many of these assumptions are based on uncontrolled factors and events mountain province And there is no guarantee that they will prove correct.
Factors that could cause actual results to differ materially from those anticipated by such forward-looking statements include the negotiating positions adopted by the parties, the ability to obtain regulatory, party and shareholder approvals on terms acceptable to the parties, which may be related to COVID-19 developments in operational hazards, including, but not limited to, protocols that may be adopted to reduce the spread of COVID-19 and the impact of such protocols on mountainous provinces business and operations, changes in ore grade or recovery, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks related to the availability and timeliness of permits and government approvals; supply and demand for diamonds; Commodity price and currency exchange rate fluctuations, the possibility of project cost overruns or unexpected costs and expenses, labor disputes and other risks in the mining industry, where plant, equipment or processes do not perform as expected.
these factors in mountainous provinces They also provide other general assumptions related to these statements in the most recent Annual Information Form and in the most recent MD&A filed on SEDAR. mountain province Note that the preceding list of important factors is not exhaustive. Investors and others based on forward-looking statements should carefully consider the foregoing factors and the uncertainties they represent and the risks they pose. mountain province It is believed that the expectations reflected in these forward-looking statements are reasonable, but there can be no assurance that these expectations will prove to be correct, and undue reliance should not be placed on such forward-looking statements contained in this press release. These statements speak only as of the date of this press release.
Although mountain province Attempts have been made to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, and there may be other factors that could cause actions, events or results to be unanticipated, estimated or expected. 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 There is no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking statements. Statements regarding mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they relate to estimates of mineralization that will be encountered when developing the property. Mineral Resources are not Mineral Reserves and have not been demonstrated to be economically viable.
also, mountain province Changes may be made to its business plans that could affect its results.main asset of mountain province Managed under the joint venture, under which mountain province Not an operator. mountain province be affected by actions or inactions taken by the operator within its prerogative and/or decisions of the joint venture under its terms.Such actions or omissions may affect future performance mountain province. Based on its current notes and revolving credit facility mountain province Its ability to pay dividends on its common stock is subject to certain restrictions.Dividends are declared at the discretion of: mountainous provinces Board of directors, subject to corporate debt financing and will depend on mountainous provinces financial performance, cash requirements, future prospects and other factors the Board deems relevant.
SourceMountain Province Diamonds Inc.
