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Mountain Province Diamonds increases private placement to $17.85 million

by Greg Klein | March 11, 2014

Bought deal brings Mountain Province Diamonds $15.3 million

JV partners Mountain Province and De Beers hope to begin production at
“the world’s largest and richest new diamond mine development” by December 2015.

 

Update: On March 12 Mountain Province increased its $15.3-million offering to 3.5 million shares at $5.10 for $17.85 million.

A company that hopes to open Canada’s next diamond mine announced a $15.3-million cash infusion March 11. The bought deal involves three million Mountain Province Diamonds TSX:MPV shares at $5.10. The transaction is expected to close on or about March 28. Mountain Province also intends to offer a non-brokered private placement at the same price.

The company has a feasibility update scheduled for release later this month on the Gahcho Kué project, which it calls “the world’s largest and richest new diamond mine development.” Construction began in December on the 4,189-hectare site at Kennady Lake, about 300 kilometres northeast of Yellowknife. A joint venture in which De Beers holds a 51% interest, Gahcho Kué is anticipated for production by December 2015.

In another private placement that closed late last month, North Arrow Minerals TSXV:NAR got $5 million to advance three projects, all JVs. The company plans a 1,500-tonne bulk sample at its Qilalugaq project in Nunavut and till sampling at the Pikoo property in Saskatchewan. North Arrow holds 80% options on both projects with Stornoway Diamond TSX:SWY.

North Arrow also has a 55% option with Arctic Star Exploration TSXV:ADD on the Redemption project in the Northwest Territories, scheduled for till sampling and geophysics this year.

Read more news about diamond exploration, mining and markets.

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