Mountain Province Asks Shareholders for More Money to Run Business

Mountain Province has asked for an additional $10 million in funding from majority investor Dunebridge Worldwide. 

The previous loan Mountain Province received was in February for $40 million, it said Monday.  The miner could access $30 million immediately, with the remaining $10 million available at Dunebridge’s discretion. 

In March, the miner revealed it had used part of the sum to continue operations and pay debt to joint-venture partner De Beers. Meanwhile, Dunebridge will now release the extra $10 million to complete the $40 million. The miner is due to return the money in March 2026. In addition, it will transfer a $1 million fee to Dunebridge on maturity of the loan.  

The Canadian government reported in April it would issue tax-relief measures for the diamond-mining sector to help maintain economic stability amid the downturn in the market.  

Mountain Province is debating whether it wants to remain listed on the Toronto Stock Exchange. However, it will need shareholders’ approval to delist, unless it joins the Toronto Venture Exchange (TSXV).  

In its latest results, posted earlier this month, Mountain Province saw revenue drop as rough prices fell. Sales slid 36% year on year, while sales volume was down 26%. 

Image: Trucks hauling ore at the Gahcho Kué mine. (Mountain Province)