Toronto – October 01, 2026 -- Mountain Province Diamonds has signed a consensual restructuring agreement transferring its entire 49% stake in the Gahcho Kué diamond mine to De Beers Canada, eliminating all outstanding liabilities tied to the Northwest Territories operation.
De Beers assumes 100% ownership of Gahcho Kué mine
Under the deal, De Beers will acquire the 49% participating interest held by 2435386 Ontario Inc. (JVCo), Mountain Province's wholly owned subsidiary, in satisfaction of remaining reclamation payments and all other debts owed under the joint venture agreement dated March 18, 2025, and the payment and security agreement dated February 24, 2025. Once completed, De Beers will hold 100% of the participating interest in the mine, and Mountain Province will be unconditionally released from the specified debt, including accrued interest, under the joint venture arrangements, credit support agreements and related security documents.
Noteholders and lender grant six-month payment suspension
The Restructuring Agreement was reached with Dunebridge Worldwide Ltd., lender under Mountain Province's junior and bridge credit facilities, and beneficial holders of the company's senior secured lien notes due December 2027. Those parties have agreed to suspend interest payments, capital repayments and the exercise of specified rights for six months, giving the company a window to restructure its balance sheet and pursue new financing.
CEO cites diamond price declines tied to tariffs and Middle East conflict
Jonathan Comerford, President and CEO of Mountain Province, said the agreement follows an extensive review of alternatives against a backdrop of a material decline in diamond prices over the past year, driven mainly by tariff-related uncertainty and the conflict in the Middle East. He said the deal removes all liabilities, provides greater certainty for employees and communities connected to Gahcho Kué, and preserves rights allowing Mountain Province to participate again in the mine's future.
JVCo retains option to reclaim stake through 2029
The agreement grants JVCo a right of first offer and right of first refusal to acquire the GK Mine or its mineral rights should De Beers elect to sell all or substantially all of the asset after the transaction closes. JVCo also holds an option to repurchase the participating interest from De Beers at any time before December 31, 2029, at a price equivalent to the share of decommissioning costs attributable to that interest.
Comerford said improved diamond market conditions could support future funding to exercise the company's rights over Gahcho Kué and continue development of the Kennady diamonds assets, which include the Kelvin and Faraday kimberlite resources on more than 96,000 hectares of claims surrounding the mine.