Mountain Province Diamonds announced planned balance sheet strengthening

Mountain Province Diamonds Inc.  announced that it has executed a non-binding term sheet with its largest shareholder, Mr. Dermot Desmond, for a proposed balance sheet strengthening package to provide increased financial flexibility to the Company. 
While the arrangements are non-binding, Mountain Province is working with Mr. Desmond in an effort to reach binding agreements early in 2022. 
The Proposed Arrangement is subject to, among other things, finalization of the specific terms thereof, the negotiation and execution of definitive documentation, as well as shareholder and regulatory approval.
The Proposed Arrangement is subject to the requirements imposed on related party transactions under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Proposed Arrangement is also subject to the approval of the Toronto Stock Exchange (the "TSX") and the approval of the Company's disinterested shareholders in accordance with MI 61-101 and the rules of the TSX.
The Proposed Arrangement is currently expected to include the issuance of approximately US$50M of new debt. The New Notes are contemplated to mature in late 2027. The Company expects to use a portion of the proceeds of the New Notes to repay the US$25M first lien revolving credit facility provided by Dunebridge Worldwide Ltd., an entity controlled by Mr. Desmond, which matures on March 31, 2022.
When implemented, the Proposed Arrangement would provide the Company with increased financial flexibility, and offer an increase in working capital, the potential for acceleration of existing note repurchases, and/or enhanced exploration activities at its 100% owned Kennady North Project.
Mark Wall, the Company's President and Chief Executive Officer, commented: "This planned investment strengthens my own optimism as we look towards a broader capital structure optimization in 2022."

Alex Shishlo for Rough&Polished