Mountain Province Diamonds Inc. announced that at its special meeting of shareholders held on February 28 87% of the votes held by disinterested shareholders were cast in favor of the previously announced debt financing transaction that significantly strengthens the company's financial position ahead of a broader refinancing of the company's indebtedness later in 2022.
The company also announced that a new, discovery-focused, 6,000-meter drill and geophysics program has been initiated on the company's 100% owned Kennady North Project.
At the special meeting, the company's disinterested shareholders approved: the entry into a US$50 million junior secured term loan credit facility with an entity ultimately beneficially owned by Mr. Dermot Desmond, and the issuance to the Lender or another entity ultimately beneficially owned by Mr. Desmond of warrants to purchase up to 41,000,000 common shares of the company for an aggregate exercise price of approximately US$25,000,000.
The 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.
The Warrants will be exercisable in whole or in part at any time up to December 15, 2027, the Maturity Date of the Loan Agreement, by paying US$0.60975 per common share.
Alex Shishlo for Rough&Polished
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