Mountain Province Diamonds Announces US$10 Million Additional Borrowings Under Bridge Facility

Core Viewpoint - Mountain Province Diamonds Inc. has amended its bridge credit facility agreement with Dunebridge Worldwide Ltd. to increase the facility size by US$10 million, raising it from US$30 million to US$40 million [1][2]. Group 1: Bridge Credit Facility Details - The original bridge credit facility agreement was established on February 24, 2025, and was amended on May 13, 2024, to provide a US$33 million working capital facility [2]. - The Additional Bridge Term Facility will mature on March 18, 2026, and carries an interest rate of 10.5% per annum, which will increase to 12.5% if not repaid upon maturity [3]. - A US$1 million fee will be paid to Dunebridge upon maturity for the Additional Bridge Term Facility, subject to shareholder approval [4]. Group 2: Related Party Transaction and Exemptions - The amendment is classified as a related party transaction under MI 61-101 due to Dunebridge being a "related party" of the Company, and it is being completed under an exemption due to the Company's serious financial difficulties [5]. - The board of directors has determined that the amendment and the Additional Bridge Term Facility are reasonable given the financial challenges faced by the Company [5]. Group 3: TSX Approval and Market Capitalization - The TSX granted conditional approval for the amendment, noting that the value of consideration to insiders for the Additional Bridge Facility (excluding the Facility Fee) will not exceed 10% of the Company's market capitalization, estimated at approximately CAD11.68 million as of July 28, 2025 [6][7]. - The estimated value of consideration to insiders for the Additional Bridge Facility (excluding the Facility Fee) is CAD959,000, representing 8% of the market capitalization [8]. - Including the Facility Fee, the estimated value of consideration to insiders is CAD2,329,000, or 20% of the market capitalization [9]. Group 4: Company Overview - Mountain Province Diamonds Inc. holds a 49% stake in the Gahcho Kué mine in Canada's Northwest Territories and controls over 96,000 hectares of mineral claims and leases surrounding the mine [10].