Business
Mountain Province Diamonds proposes to enter into a transaction to sell U.S.$50,000,000 of Diamonds
Mountain Province Diamonds proposes to enter into a transaction to sell U.S.$50,000,000 of...
About this update from Mountain Province Diamonds Inc.
[{"type":"text","content":"\n\n\n\nMountain Province Diamonds proposes to enter into a transaction to sell U.S.$50,000,000 of Diamonds\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO and NEW YORK, June 8, 2020\n\n\n\nTSX and OTCQX: MPVD\n TORONTO and NEW YORK, June 8, 2020 /CNW/ - Mountain Province Diamonds Inc. (\"Mountain Province\", or the \"Company\") (TSX: MPVD) and (OTCQX: MPVD) today announces that it proposes to enter into an agreement to sell (the \"Sale\") U.S.$50,000,000 of diamonds to Dunebridge Worldwide Ltd. (\"Dunebridge\"). The first sale for approximately U.S.$ 22,000,000 is expected to occur on June 11th, 2020 following the execution of a binding agreement.\n\n \n \n \n \n \n \n\n \nThe transaction with Dunebridge will permit the Company to sell its run of mine diamonds (below 10.8 carats) at the prevailing market price at the time of each sale.  The transaction will also allow the Company to participate, after fees and expenses in a portion of any increase in the value of the diamonds realized by Dunebridge upon its future sale of the diamonds to a third party. The fees, calculated per each sale, are fixed at 10% of the value of each sale for the first year and 10% per year pro-rated for years 2 and 3.  The expenses relate to any future sale costs. Once all fees and expenses have been deducted any surplus will be shared equally between Dunebridge and the Company.\nThe traditional markets for rough diamonds have been closed since mid March 2020 due to the impacts of COVID-19. In the interim, and as previously announced, the Company had been seeking alternative sales channels and sources of financing to ensure sufficient funding for operational and corporate expenses as the mine continues to be operational.  This transaction is expected to provide the liquidity required in the short term whilst the Company awaits the gradual re-opening of the global economy and traditional selling methods.  \nA committee of directors of Mountain Province, all of whom are independent of management and the major shareholder of Mountain Provinc...