De Beers Canada has agreed to acquire Mountain Province Diamonds’ 49% participating interest in the Gahcho Kué diamond mine in Canada’s Northwest Territories, giving De Beers 100% ownership of the operation.
Under the restructuring agreement announced on 1st October, De Beers will acquire Mountain Province’s interest in exchange for the remaining reclamation payments and other debts owed to De Beers. The transaction will also release Mountain Province and its subsidiaries from outstanding obligations linked to the joint venture.
The deal comes after a significant decline in diamond prices, which Mountain Province attributed largely to tariff-related uncertainty and the conflict in the Middle East. The restructuring also provides Mountain Province with a six-month suspension of interest and capital repayments, giving it time to restructure its balance sheet and pursue new funding.
Mountain Province will retain certain rights over Gahcho Kué. These include a right of first offer and first refusal if De Beers seeks to sell the mine or its mineral rights, as well as an option to reacquire its 49% interest until December 31, 2029, at a price equivalent to its share of the mine’s decommissioning costs.
Mountain Province also controls more than 96,000 hectares of mineral claims and leases surrounding Gahcho Kué, including resources associated with the Kelvin and Faraday kimberlites.