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Mountain Province Receives Credit Approval on $370M Loan

Feb 3, 2015 10:49 AM   By Ronen Shnidman
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RAPAPORT... Mountain Province Diamonds Inc. received approval for its previously announced $370 million loan facility.  Since the original announcement of the loan, the lead arranger, Deutsche Bank, was replaced by the Bank of Nova Scotia (Scotiabank).

Patrick Evans, the CEO of Mountain Province, had earlier stated that the deal had not closed before the end of 2014 as previously anticipated because of prolonged talks with the banks. The other two original joint-mandated lead arrangers, Natixis and Nedbank Limited, remain parties to the loan facility.

Mountain Province noted that Scotiabank's replacement of Deutsche Bank on the loan was not related to the specifics of the loan facility or the Gahcho Kué mine project, which is located in Canada's Northwest Territories.

Mountain Province is a Canada-based mining company that holds a 49 percent participating stake in the Gahcho Kué diamond mine, with De Beers holding a 51 percent stake.  Each party is responsible for their share of the mine's development and operating costs. Mountain Province expects to fund a large share of its development costs through the loan facility.

"We welcome Scotiabank to the lending syndicate and are very pleased to have Canada's leading lender to the mining industry as part of the lending group," said Evans. "Significant progress was made to complete due diligence prior to the end of 2014 and credit approval has now been received from the lead arrangers."

The company added that the finalization of the loan facility still remains subject to certain conditions, including agreement on syndication, which is expected to be reached shortly.

At the end of December, 2014, the overall Gahcho Kué project was more than 50 percent complete. Mountain Province said that project is on budget and is still scheduled for first production in the second half of 2016.
Tags: Deutsche Bank, Gahcho Kue, loan facility, mountain province, northwest territories, Ronen Shnidman, scotiabank
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