Mountain Province Diamonds Inc. announced it has signed a non-binding memorandum of understanding (“MoU”) with its partner in the Gahcho Kué mine, De Beers Canada Inc. (“De Beers”).
Image credit: De Beers
The MoU contemplates incorporating properties owned by Kennady Diamonds Inc. (“Kennady Diamonds”) into the Gahcho Kué joint venture, in the event that Mountain Province’s proposed acquisition of Kennady Diamonds is approved. Mountain Province and De Beers will now work towards a definitive agreement based on the MoU.
David Whittle, Interim President and Chief Executive Officer of Mountain Province, said, “The start up of the Gahcho Kué mine under De Beers’ operatorship has been a clear success, and the positive working relationship that exists between the joint venture partners is a key component of that success. Mountain Province firmly believes that the proposed Kennady Diamonds transaction can add significant project value through the potential to access Kennady Diamond’s kimberlite resources. We look forward to working with De Beers in the effort to develop a plan to integrate the Kennady Diamonds resources into the Gahcho Kué project.”
Kennady Diamonds owns 100% of the Kennady North diamond project located in Canada's Northwest Territories, immediately adjacent to the Gahcho Kué mine.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué JV, located in Canada's Northwest Territories.
Alex Shishlo, Editor of the Rough&Polished European Bureau in Brussels