Diamond company, Mountain Province, seals US$10-million loan deal with Dunebridge Worldwide
Mountain Province Diamonds Secures Additional Funding Amid Financial Challenges
Mountain Province Diamonds Inc., a Canadian diamond company operating the world's largest diamond mine in a joint venture with De Beers, has announced a significant financial move to bolster its position amidst declining revenues and production.
The company has secured an additional US$10-million term loan from Dunebridge Worldwide Ltd., raising its total credit facility to US$40 million. This loan, announced on July 28, 2025, comes with an interest rate of 10.5% per annum, capitalized and compounded quarterly, payable at maturity on March 18, 2026. If not repaid by maturity, the interest rate rises to 12.5% per annum.
The legal advice for this arrangement was provided by Hoskin & Harcourt LLP, a reputable firm with experts such as Joanna Cameron, Nikki Cargill, Martha Martindale, and Matthew Li. While the specifics of their role are not fully disclosed, their expertise in legal and financial advisory, particularly in debt restructuring and financing agreements, is likely to have played a crucial part in this transaction.
The additional funds come as a relief for Mountain Province Diamonds, which has been grappling with declining production and sales. The company's Q2 2025 results showed a substantial decline in carats sold and sales revenue compared to the previous year, with sales dropping to $36.8 million CAD (US$26.6 million) from $56.8 million CAD (US$41.5 million) a year earlier.
The stock price of Mountain Province Diamonds reflects the company's challenging position, showing volatility and a downward trend, with analysts holding a negative outlook for the near future.
Despite these challenges, Mountain Province Diamonds continues to operate the world's largest diamond mine, located in the Northwest Territories. The mine is a joint venture between Mountain Province Diamonds and De Beers, contributing significantly to the company's operations.
This strategic move by Mountain Province Diamonds is expected to provide the company with much-needed breathing space as it navigates through its financial difficulties. The additional funds will undoubtedly aid in maintaining operations and potentially investing in measures to improve production and sales.
[1] Mountain Province Diamonds Reports Q2 2025 Results
[2] Mountain Province Diamonds' Sales Decline in Q2 2025
[3] Analysts Remain Negative on Mountain Province Diamonds' Outlook
[4] Mountain Province Diamonds' Stock Price Volatility
[5] Mountain Province Diamonds Announces Amendment to Bridge Term Credit Facility
[1] The additional finance secured by Mountain Province Diamonds, amounting to US$10 million, might improve their financial standing, as reported in the Q2 2025 results (Mountain Province Diamonds Reports Q2 2025 Results).
[2] The recently announced amendment to Mountain Province Diamonds' bridge term credit facility, increasing it to US$40 million, could potentially help the company stabilize its declining sales (Mountain Province Diamonds' Sales Decline in Q2 2025).
