NORTHWEST TERRITORIES – Mountain Province Diamonds is undertaking a non-brokered private place to raise $25 million for work at the Gahcho Kué diamond project at Kennady Lake, 400 km northeast of Yellowknife. The company says the funds will be used for pre-production capital expenses and the Tuzo Deep drilling program.
The private placement consists of 5.0 million Mountain Province common shares at a price of $5 each. Bottin (International) Investments, the largest shareholder of Mountain Province, will participate. The deal is to close on or before Nov. 22, 2014, subject to customary regulatory approval.
Mountain Province is the 49% owner of the Gahcho Kué project with De Beers Canada, the operator and owner of 51%. The probable mineral resource sits at 31.3 million tonnes grading 1.57 ct per tonne for a total content of 49 million ct. Production is scheduled to begin in December 2015.
More information is available at MountainProvince.com.