Mountain Province Diamonds Inc. Announces Comprehensive Restructuring Agreement to Strengthen its Financial Position

Mountain Province Diamonds Inc. (MPVD) has agreed to sell its 49% participating interest in the Gahcho Kué (GK) mine to De Beers Canada Inc. The transaction effectively settles remaining reclamation payments and all debts owed to De Beers. Under the terms of the deal, MPVD is unconditionally and irrevocably released from all outstanding indebtedness to De Beers, including the Specified Debt, accrued interest, and obligations under the Joint Venture Agreement (JVA) and Payment and Security Agreement.

MPVD retains control of more than 96,000 hectares of surrounding mineral claims, which include indicated resources at the Kelvin kimberlites and inferred resources at the Faraday kimberlites. JVCo receives a Right of First Offer/Refusal and an option to purchase the GK interest back from De Beers by December 31, 2029, at a price equivalent to MPV's share of decommissioning costs.

Additionally, noteholders and Dunebridge Worldwide Ltd. have agreed to a six-month suspension of interest and capital repayments on senior secured lien notes. The company cites tariff uncertainty, the Middle East conflict, and declining diamond prices as primary drivers for the comprehensive restructuring.

Mountain Province Diamonds Inc. (MPVD) has entered into a restructuring agreement that resolves its liquidity crisis by transferring a 49% interest to De Beers. This transaction removes approximately $130 million in cash-call arrears and future reclamation liabilities from the company’s balance sheet. The move shifts MPVD’s role from a distressed joint venture operator to a lean claim holder, establishing a structured mechanism for exit and potential re-entry.

The agreement includes a six-month debt suspension, providing immediate operational runway for the company to explore the Kelvin and Faraday claims or secure government funding through the Canada Emergency Credit Facility (CEEFC). MPVD’s stock, which was trading near $0.01 and priced for bankruptcy, has seen a positive market reaction to the deal, although execution risks and market dependencies remain.

Mountain Province Diamonds Inc. (MPVD) holds a 49% interest in the Gahcho Kué (GK) diamond mine in the Northwest Territories, Canada. Joint venture partner De Beers Canada Inc. holds the remaining 51%. GK is the last operating diamond mine in Canada following the closure of Diavik and Ekati. MPVD controls extensive surrounding mineral claims, including the Kelvin and Faraday kimberlites.