UPDATE: Mountain Province Diamonds Partner De Beers Confirms Gahcho Kue Permitting on Schedule; Shares Down 1.1% at Midday


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Mountain Province Diamonds Inc. (MPV.TO) is down 1.14% to $4.33 on volume 4,900 early afternoon.

The company today confirmed that joint venture operating partner, De Beers Canada Inc. has reported that the permitting of the Gahcho Kue diamond project is on schedule. The 24-month environmental review is nearing completion with the final hearing scheduled in approximately four months.

The Gahcho Kue project, which is the world's largest and richest new diamond mine, is currently the subject of an environmental impact review (EIR) being managed by the Mackenzie Valley Environmental Impact Review Board based in Yellowknife, Northwest Territories.

Mountain Province also reported that preparations for development under the Advance Program are also progressing on schedule. The Gahcho Kue joint venture partners approved an initial capital allocation of C$31.3M in June, 2012, for:

1. Construction and operating permit applications;

2. Front-end engineering and design ( FEED );

3. Preparations and procurement for the 2013 winter road;

4. Detailed engineering;

5. Purchase of critical long-lead equipment; and

6. Feasibility study update.

Good progress is being made with the arrangement of the Company's 49% share of the Gahcho Kue capital budget, which is estimated at approximately C$300M, inclusive of working capital. Mountain Province has received multiple proposals for project financing, off-take financing and a variety of other instruments which, if successfully concluded, would enable to the Company to substantially meet its capital requirements.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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