Mountain Province Diamonds announces private offering of senior secured second lien notes

27 November 2017

Mountain Province Diamonds Inc. today announces that it intends to offer US$325,000,000 aggregate principal amount of senior secured second lien notes due 2022 on a private placement basis.
The Notes will be guaranteed by each of the company's subsidiaries and will be secured on a second-priority basis by substantially all of the company’s assets, including the company’s 49% participating interest in the joint venture related to the Gahcho Kué diamond mine. Mountain Province intends to use the net proceeds from the offering of the notes, together with cash on its balance sheet, to fully repay and terminate its US$370 million project loan facility (of which US$357 million was outstanding as of September 30, 2017), to fully repay amounts owing to De Beers Canada, the operator of the Gahcho Kué diamond mine, for historic sunk costs related to the development of the mine (of which approximately C$48.5 million of costs and accumulated interest was outstanding as of September 30, 2017), and to pay related fees and expenses of the offering of the Notes and the entry into the new revolving credit agreement.