Mountain Province Diamonds obtains waiver under revolving credit facility

Mountain Province Diamonds Inc. has entered into a waiver agreement related to the revolving credit facility with The Bank of Nova Scotia and Nedbank Limited, London Branch, as per prnewswire.com
The waiver exempts the miner from compliance with financial covenants including the total leverage ratio, total net worth tests that it would otherwise have had to satisfy as of June 30, 2020. Also, it removes the miner’s covenant to maintain a minimum cash balance. In exchange, the Company has agreed to a reduction in the size of the revolving credit facility to $25 mln
from $50 mln and the imposition of additional covenants.
The miner under the Credit Agreement is also required to maintain certain performance metrics with respect to net cash flows and expenditures.
In addition, Mountain Province is required to demonstrate progress by August 31, 2020 to be able to enter into a binding financing commitment by September 30, 2020 in order to repay the revolving credit facility. The Waiver contains customary representations and warranties and events of default.
Mountain Province is also continues its negotiations with its major shareholder and other financial institutions to secure additional debt facilities in order to repay the current lenders and meet short term obligations and will update the market accordingly.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished