$50m Loan for Mountain Province from Biggest Shareholder
January 04, 22
(IDEX Online) - Canadian miner Mountain Province Diamonds (MPD) is set to receive a $50m loan from its biggest shareholder, allowing it pay back an earlier loan of $25m and ease its financial liquidity needs.
The cash is coming from Irish billionaire Dermot Desmond, who has a 32 per cent holding in MPD through his firm Dunebridge, and who is also the largest individual shareholder in Scotland's Celtic football club.
He provided MPD with $33m last May as a short-term loan, to ease its near-term liquidity needs, as it faced the Covid-enforced closure of its Gahcho Kue mine (pictured), and the resulting cancellation of a sale in Antwerp. Dunebridge also arranged a $25m secured loan in October.
"This planned investment by our largest shareholder and significant debt holder, Mr Dermot Desmond, further demonstrates his confidence in Mountain Province, and the strong macro-environment for our diamonds," said Mark Wall, CEO of MPD.
"Additionally, this planned investment strengthens my own optimism as we look towards a broader capital structure optimization in 2022."
The new deal is subject to approval by the company's shareholders and the Toronto Stock Exchange.