Financial Advisor Retained to Arrange Project Debt Facility
Shares Issued and Outstanding: 106,039,522
TSX: MPV
NYSE MKT: MDM
TORONTO AND NEW YORK, May 14, 2014 /CNW/ - Mountain Province Diamonds
Inc. ("Mountain Province", the "Company") (TSX: MPV, NYSE MKT: MDM)
today announced that the Gahcho Kué Project - 2014 Feasibility Study
Report has been filed and will be available on SEDAR, EDGAR and the
Company's website.
The Gahcho Kué Project is a Joint Venture between Mountain Province
(49%) and DeBeers Canada (51%). As previously announced, the Gahcho Kue
Project, 2014 Feasibility Study Report project highlights are as
follows:
Financial and project highlights:
-
IRR (excluding sunk costs)
|
32.6%*
|
|
|
Cdn$1.005B
|
-
Capital to completion (2013$ unescalated)
|
Cdn$858.5M**
|
|
|
Cdn$80.1
|
-
Ramp up operating costs through Jan '17
|
Cdn$82.0M
|
-
Sustaining capital LOM (including closure cost)
|
Cdn$92.7M
|
-
Operating costs (per tonne processed, incl. sorting)
|
Cdn$72.51
|
|
|
12 years
|
-
Average annual production
|
3 million tonnes
|
|
|
53.4 million carats
|
-
Average annual diamond production
|
4.45 million carat
|
|
|
US$149.66 per carat***
|
|
*After taxes/royalties and unleveraged
|
|
**Including Cdn$75.6M contingency
|
|
***Diamond revenue for the Feasibility Study is derived from the modeled
diamond price estimate provided by WWW International Diamond
Consultants (February 2014 price book) exclusive of any marketing fees
post government valuation. Price forecasting is inclusive of a real
1.5% escalation over LOM. Average modeled diamond price in 2014$ is
US$118.38
|
The average annual production for the first three years of full
production (2017 - 2019) is estimated at 5.6 million carats. The ramp
up costs of Cnd$82.0M noted above does not take into consideration the
revenue expected from the estimated production of approx. 1 million
attributable carats during the production ramp-up period between
September 2016 through January 2017.
"The feasibility study report confirms an economically robust,
technically credible and environmentally sound development plan for the
Gahcho Kué mine", said Mountain Province CEO Patrick Evans.
Mountain Province is also pleased to announce the appointment of Mr.
George Rogers, CEO of Rockface Capital Ltd., as financial advisor to
the Company in respect of the arrangement of a debt facility required
for the completion of the development of the Gahcho Kué Project.
Patrick Evans noted: "The Company has received indicative term sheets
from a number of potential bank and non-bank lenders. With the support
of Mr. Rogers we will be evaluating these proposals with a view to
selected a preferred lender in the near future and completing loan
agreements prior to the end of 2014".
****
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué JV located
at Kennady Lake in Canada's Northwest Territories. The Gahcho Kué
Project consists of a cluster of four diamondiferous kimberlites, three
of which have a probable mineral reserve of 31.3 million tonnes grading
1.57 carats per tonne for total diamond content of 49 million carats.
Gahcho Kué is the world's largest and richest new diamond development
project. A December 2010 feasibility study filed by Mountain Province
(available on SEDAR) indicates that the Gahcho Kué project has an IRR
of 33.9%.
Forward-Looking Statements
This news release may contain forward-looking statements, within the
meaning of the "safe-harbor" provision of the Private Securities
Litigation Reform Act of 1995, regarding the Company's business or
financial condition. Actual results could differ materially from those
described in this news release as a result of numerous factors, some of
which are outside the control of the Company.
SOURCE Mountain Province Diamonds Inc.
