Societe Generale Joins Mountain Province Diamonds’ Lending Syndicate

Mountain Province Diamonds Inc. (TSX:MPV,NASDAQ:MDM) announced that Societe Generale SA (EPA:GLE) has joined its lending syndicate.

As quoted in the press release:

On April 7, 2015, the Company announced the closing of the US$370M term loan facility (the ‘Facility’) with a syndicate of lenders led by Natixis S.A., Scotiabank and Nedbank Ltd., and including ING Capital LLC, Export Development Canada and the Bank of Montreal. With the inclusion of Société Générale syndication of the Facility is now complete.

The Facility completes the Company’s anticipated funding requirements for the balance of the capital and working capital required for the construction and commissioning of the Gahcho Kué diamond mine and to achieve planned commercial production. The maximum term of the Facility is seven years and the interest rate is US$ LIBOR plus 5.5 percent.

Patrick Evans, CEO of Mountain Province, commented:

We are pleased to welcome Société Générale, a major lender to the international mining industry, to our lending group. We are also pleased with the continued on-plan and on-budget development of Gahcho Kué, which is a testament to the skill and experience of our operating partner, De Beers Canada.

About Gahcho Kue:

Gahcho Kué will be Canada’s fifth diamond mine and is projected to produce an average of 4.45 million carats per year from open pit over the first 12 years. During the first three years production is expected to average 5.6 million carats per year. Approximately 3 million tonnes of kimberlite will be processed per year at a projected operating cost of Cnd$72.51 per tonne or approximately Cnd$207 million (MPV 49% Cnd$101M). Revenue, based on independent modeled diamond prices, is projected at approximately US$150 per carat, or US$842 million (MPV 49% US$413 million) per year for the first three years of full production, net of marketing costs. A 2014 NI 43-101 feasibility study report filed by Mountain Province (available on SEDAR) indicates that the Gahcho Kué project has an IRR of 32.6%.

Click here to read the full Mountain Province Diamonds Inc. (TSX:MPV,NASDAQ:MDM) press release.