Mountain Province has borrowed $20 million from its majority shareholder to enable it to continue operations and pay off debts to joint-venture partner De Beers.
The miner took the loan from Dunebridge Worldwide to cover losses it accrued as a result of continued weak demand for diamonds, which has left prices low and put Mountain Province in financial difficulty. The new loan is part of a major refinancing effort by the miner, with the company disclosing last month that it was having trouble meeting immediate and near-term obligations to both lien holders and De Beers. The mining giant owns 51% of the Gahcho Kué mine in Canada, while Mountain Province holds the remaining 49% stake.
The company’s debt holders have also agreed to extend the deadline for repayment of its $177 million revolving loan from December 2025 to December 2027, Mountain Province said Saturday.
“These transactions serve to address the reclamation liabilities owed to De Beers as operator of the Gahcho Kué 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,” said Mountain Province CEO Mark Wall.
Image: The Gahcho Kué mine. (Mountain Province)
