DIAMONDS: Mountain Province raises $100M for Gahcho Ku

NORTHWEST TERRITORIES – Mountain Province Diamonds of Toronto has arranged a $100-million private placement with which to meet its obligations at the Gahcho Kué diamond project 300 km northeast of Yellowknife. The funds will be provided by a syndicate jointly underwritten by BMO Capital Markets, RBC Capital Markets and Scotia Capital.

The underwriters have agreed to buy 15 million Mountain Province common shares at a price of $5 per share for gross proceeds of $75 million. The remaining $25 million will be raised through the sale of 5 million shares under the same terms to Bottin (International) Investments and other qualified investors.

The Gahcho Kué mine and processing plant are being readied for the start of production in Q3 2016. The schedule calls for recovering 4.5 million ct per year for 12 years from an open pit. Mountain Province's partner and 51% owner of the project, De Beers Canada, is the operator.

Technical reports and videos about Gahcho Kué are available at MountainProvince.com.