Mountain Province Diamonds Extends Maturity on Credit Facility and Provides Update on Cash Call Arrears
Mountain Province Teeters on Default as De Beers Issues $49M Cash Call Amidst Desperate Debt Extensions
The most recent news (March 17, 2026) reveals a critical liquidity crunch. Mountain Province Diamonds (MPVD) has been forced to extend the maturity of its US$40 million term loan and US$33 million working capital facility from mid-March to April 30, 2026. Simultaneously, the company has failed to meet cash calls from its joint venture partner, De Beers, totaling CAD$49,171,619. De Beers has issued "in-kind election notices," effectively demanding diamonds in lieu of cash, with a final payment deadline of May 16, 2026. The company is explicitly relying on financial hardship exemptions to bypass standard shareholder protections for these transactions.
The impact is severely negative and suggests a high risk of insolvency. - Default Risk: Failure to pay the De Beers cash calls within 60 days constitutes a formal event of default under the Joint Venture Agreement (JVA), which would trigger cross-defaults across all secured indebtedness. - Operational Paralysis: The company has paused the Tuzo Phase 3 project due to poor economics. While 2026 guidance suggests 6.6–7.2 million carats recovered, the inability to fund its share of mine costs (49%) puts the entire operation at risk. - Dilution/Asset Loss: The "in-kind" notices mean MPVD is losing its diamond inventory to De Beers to cover debts, preventing the company from generating its own cash flow from sales. - Management Instability: The CEO recently departed, and the Chairman has stepped in as interim CEO specifically to cut costs, signaling a "bunker mentality."
Mountain Province Diamonds owns a 49% interest in the Gahcho Kué diamond mine in the Northwest Territories, Canada, with De Beers Canada holding the remaining 51%. The mine is a high-grade, remote operation. The company's current strategy relies entirely on the 5034-NEX (Northeast Extension) orebody, which is expected to provide higher grades to offset the current liquidity crisis. It also owns 100% of the Kennady North Project.