12:35 PM EST, 02/25/2025 (MT Newswires) -- Mountain Province Diamonds ( MPVDF ) on Tuesday it reached a refinancing agreement with DeBeers recalibrate their obligations for the decommissioning costs of the Gahcho Kue (GK) diamond mine in the Northwest Territories and the granting of additional security to De Beers for the company's obligations.

In addition, a bridge credit facility agreement has been struck with Dunebridge Worldwide for a term loan of up to USD$40 million.

The GK Mine is operated as a joint venture between the company and De Beers. Mountain Province holds a 49% interest in the mine. De Beers holds the remaining 51% interest and operates the mine.

The company expects 2025 to be a particularly challenging year for the production and sale of rough diamonds from the Gahcho Kue mine, and refinancing transactions are designed to meet those challenges until mid Q2 this year,. Operating costs of the GK Mine are typically higher in the first half of the year due to the costs associated with the winter road serving the site. The company is seeking a revolving capital facility of up to $33 million.

"The refinancing transactions conclude months of negotiations with De Beers and the company's creditors," chief executive Mark Wall said. "The primary objectives of these transactions are to address the reclamation liabilities owed to De Beers, find a solution to the 2025 near to medium term cash flow deficit, extend the term of the Second Lien Notes (that were due to expire at the end of this year), and most importantly, protect shareholder value."

The company's shares were last seen down $0.005 to $0.06 on the Toronto Stock Exchange.

Price: 0.06, Change: -0.01, Percent Change: -7.69