Mtn Province arranges financing

Low on cash, Mountain Province Diamonds (MPV-T) intends to raise just under a million dollars in a private placement of more than 1.9 million units priced at 50 apiece.

A unit will consist of one share and a half warrant. A full warrant will entitle the holder to buy an additional share at 60 for one year.

The junior has 46.1 million shares outstanding, or 50 million fully diluted, and holds a 44.1% interest in the Gahcho Kue (formerly Kennady Lake) diamond project in the Northwest Territories. Mountain Province is awaiting the valuation results of a large parcel of diamonds recovered from two of the highest value pipes at Gahcho Kue.

De Beers Consolidated Mines, a partially owned unit of Anglo American (AAUK-Q), operates the project and has a 51% stake. Camphor Ventures (CFV-V) holds the remaining 4.9%.

De Beers can boost its interest to 60% by advancing the project to commercial production.