Mountain Province Diamonds announced that board of directors approved junior credit facility transaction

Mountain Province Diamonds Inc. announced that it has mailed to its shareholders a notice of special meeting and management information circular and related materials for a special meeting of shareholders to be held on February 28, 2022. 
At the Special Meeting, the company will seek disinterested shareholder approval for the entry into a new US$50 million junior secured term loan credit facility with an entity  ultimately beneficially owned by Dermot Desmond, and the issuance to the Lender or another entity ultimately beneficially owned by Dermot Desmond of warrants and together with the Proposed Loan Agreement to purchase up to 41,000,000 common shares of the company for an aggregate exercise price of approximately US$25,000,000. The Warrants will be exercisable in whole or in part at any time up to the Maturity Date by paying US$0.60975 per common share.
The Proposed Loan Agreement will mature on December 15, 2027 and be secured by substantially all of the properties and assets of the company and its subsidiaries on a junior basis to the company's existing second lien notes. 
The Proposed Loan Agreement will bear interest at a rate of 8% per annum until December 15, 2022, after which the interest rate will be 2% per annum greater than the interest rate on the debt that replaces or refinances the company's existing second lien notes, payable on a semi-annual basis. The company will be entitled to prepay the Proposed Loan Agreement at any time prior to the Maturity Date without penalty.
The Company intends to issue the Warrants, as described above, as partial consideration for the extension of credit under the Proposed Loan Agreement. The exercise price and number of common shares underlying the Warrants will each be subject to customary anti-dilution adjustments.

Alex Shishlo for Rough&Polished