Announced on 1 October, the restructuring deal will see De Beers take over Mountain Province’s participating interest in exchange for the remaining reclamation-related payments and other amounts owed to De Beers. The agreement will also remove Mountain Province and its subsidiaries from their outstanding obligations under the Gahcho Kué joint venture.
The move comes as weaker diamond prices continue to put pressure on the industry. Mountain Province has pointed to tariff uncertainty and the ongoing conflict in the Middle East as factors contributing to the challenging market environment.
For Mountain Province, the agreement provides some financial breathing room. The company will receive a six-month suspension on interest and capital repayments, allowing it additional time to restructure its balance sheet and explore new financing options.
Despite giving up its current ownership stake, Mountain Province will retain several rights connected to Gahcho Kué. If De Beers decides to sell the mine or its mineral rights, Mountain Province will have rights of first offer and first refusal. It will also have the option to reacquire its 49% interest through 31 December 2029, at a price linked to its share of the mine’s decommissioning costs.
Mountain Province will continue to hold more than 96,000 hectares of mineral claims and leases around Gahcho Kué. The surrounding land package includes resources associated with the Kelvin and Faraday kimberlites, keeping the company exposed to the region’s longer-term exploration potential.
For De Beers, the transaction marks a significant shift at one of Canada’s major diamond operations, giving it complete ownership and control of Gahcho Kué.
