Mountain Province in Restructuring Deal That Will See De Beers Get Stake in Diamond Mine
By Robb M. Stewart
Mountain Province Diamonds will offload its stake in the Gahchko Kue diamond mine in northern Canada to partner De Beers as it looks to strengthen its finances after a slump in diamond prices over the last year.
The Canadian company said Thursday it entered a consensual restructuring deal with De Beers Canada, Dunebridge Worldwide, the lender under the its junior and bridge credit facilities, and bondholders.
The deal will see De Beers obtain Mountain Province's 49% stake in the mine in the Northwest Territories in satisfaction for the company's share of the decommissioning, reclamation and environmental clean-up costs at the mine, as well as all other debts owed to De Beers.
President and Chief Executive Jonathan Comerford said the agreement followed a review by Mountain Province of available alternatives against the backdrop of a material fall in diamond prices that has been driven by tariff-related uncertainty and the conflict in the Middle East.
"It provides the most credible path to protect stakeholder value in the current circumstances. It removes all liabilities, provides greater certainty for the employees and communities connected to Gahcho Kue, and preserves rights that allow Mountain Province to participate again in the mine's future," Comerford said.
The company said noteholders and Dunebridge have agreed to provide it with a six-month period during which interest and capital repayments and the exercise of specified rights will be suspended, giving Mountain Province time to restructure its balance sheet and pursue new funding.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
October 01, 2026 09:59 ET (13:59 GMT)
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