Mountain Province Sells $5M in Rough at a Discount to Continue Operations

Mountain Province Diamonds has finalized an additional sale of the rights, title and interest for its future diamond receivables, this time for $5 million.

The company will sell the proceeds from its diamonds to its majority shareholder, Dunebridge Worldwide, for $4.2 million, 83% of their value, it said Monday. It will use the funds for operating expenses at the Gahcho Kué mine in Canada’s Northwest Territories, enabling it to stay afloat in the near term as it evaluates its strategic options. The miner, which owns 49% of the deposit, has faced financial pressure amid weakness in the rough-diamond market.

The move follows a similar transaction between Mountain Province and Dunebridge last month for $833,000, giving the stakeholder access to future receivables from $999,000 worth of diamonds.

However, Mountain Province must first settle its debt to De Beers, its joint-venture partner and owner of the remaining 51% stake in the mine, before Dunebridge can receive the proceeds.

The company has also made an agreement with De Beers to extend the due date of the company’s initial payment toward the fund established to cover decommissioning costs related to the mine. The parties have postponed the deadline by three months to September 30, 2026.

Ongoing US tariffs continue to weigh on demand for rough diamonds, especially in key consumer markets, commented Mountain Province CEO Jonathan Comerford.

“The conflict in the Middle East has added further uncertainty to the global outlook, compounding an already weak pricing environment and continuing to place material pressure on the company’s cash flow,” he continued. “We are actively pursuing financial support through the federal government’s Canada Enterprise Emergency Funding Corporation, including its Large Enterprise Emergency Funding Facility for companies impacted by tariffs.”

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