Mountain Province Diamonds Announces Receipt of Interim Order in Connection with Proposed Arrangement with Kennady Diamonds and Confirms date for Special Meeting of Shareholders
Mountain Province Provides Statement Required by Section 610(b) of the
NYSE Amex Company Guide
Shares Issued and Outstanding: 80,645,558
NYSE- AMEX: MDM
TORONTO AND NEW YORK, March 29, 2012 /PRNewswire/ – Mountain Province Diamonds
Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NYSE-AMEX: MDM)
today announced that it has received an interim order of the Supreme
Court of Ontario with respect to its previously announced plan of
arrangement, pursuant to which the Company will transfer the Kennady
North property to Kennady Diamonds Inc. (“Kennady”) (the
On March 13, 2012, Mountain Province announced the Arrangement. Upon
completion of the transfer of the Kennady North property and working
capital in the amount of approximately C$3M to Kennady Diamonds,
Mountain Province intends to distribute the shares of Kennady Diamonds
to Mountain Province shareholders on the basis of one Kennady Diamonds
share for every five shares of Mountain Province held by shareholders
at the Effective Date. The Arrangement is subject to, among others, a
final court order as well as regulatory and shareholder approvals.
Assuming Mountain Province shareholders approve the Arrangement, Kennady
Diamonds will seek approval to list its common shares for trading on
the TSX Venture Exchange.
As part of the interim order, Mountain Province has set the date for the
special meeting of shareholders and confirms that it will be held on
Wednesday, April 25(th) at 4:00 p.m. at the offices of Fraser Milner Casgrain LLP at 77 King
Street West, Suite 400, Toronto, Ontario, where shareholders will be
asked to approve, among other items of business, the Arrangement.
Mountain Province also confirmed today that the auditors’ report
received from its independent public accounting firm on its audited
financial statements for the fiscal year ended December 31, 2011 (the
“Annual Financial Statements”) contained a going concern explanatory
note. Mountain Province’s Annual Financial Statements were included in
Form 20-F for its filings in the United States with the Securities and
Exchange Commission on March 29, 2012. Mountain Province’s Annual
Financial Statements are also filed on SEDAR at www.sedar.com in Canada.
This press release and public confirmation of the “going concern” note
is required by Section 610(b) of the NYSE AMEX Company Guide, which
requires a listed company that receives an audit opinion that contains
a going concern qualification to make a public announcement of such in
the United States. This announcement does not represent any change or
amendment to Mountain Province’s Annual Financial Statements or to its
Annual Report on Form 20-F for the fiscal year ended December 31, 2011.
About Kennady North
The Kennady North project comprises thirteen leases and claims located
to the west and north of the four leases controlled by the Gahcho Kué
Joint Venture between De Beers Canada Inc. (51%) and Mountain Province
Exploration at Kennady North commenced in the late 1990′s and resulted
in the discovery of the diamondiferous Kelvin, Faraday and Hobbes
kimberlites. The number of diamonds recovered from these kimberlites
and the size-frequency distribution indicate that they may be of
comparable grade to the 5034 (1.77 carats per tonne) and Hearne (2.10
carats per tonne) kimberlites at the Gahcho Kué JV. Exploration samples
from Kelvin and Faraday returned a relatively large number of macro
diamonds with the two largest being a 0.4 carat diamond from Faraday
and a 0.09 carat diamond from Kelvin.
The known kimberlites at Kennady North do not explain all the
kimberlitic indicators previously recovered from glacial till sampling.
Exploration at Kennady North was suspended in 2004 when Mountain
Province focused the Company’s attention on the Gahcho Kué
pre-feasibility and feasibility studies.
Exploration at Kennady North recommenced during 2011 with a 50-meter
line-spacing airborne gravity gradiometry (AGG) survey over the entire
123.6 square kilometer project area. The survey identified 106
geophysical targets. The Company has commenced 560-line-kilometre
total magnetic field (MAG) ground survey over the 106 geophysical
targets identified by the AGG survey, which is expected to be completed
by the end of March, 2012. The high priority targets identified through
the AGG and MAG surveys will be scheduled for drilling as soon as a
land use permit is obtained.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué JV located
at Kennady Lake in Canada’s Northwest Territories. The Gahcho Kué
Project consists of a cluster of four diamondiferous kimberlites, three
of which have a probable mineral reserve of 31.3 million tonnes grading
1.57 carats per tonne for total diamond content of 49 million carats.
Gahcho Kué is the world’s largest and highest grade new diamond
development project. A December 2010 feasibility study filed by
Mountain Province (available on SEDAR) indicates that the Gahcho Kué
project has an IRR of 33.9%.
This news release has been prepared under the supervision of Carl G.
Verley, P.Geo., who serves as the qualified person under National
This news release may contain forward-looking statements, within the
meaning of the “safe-harbor” provision of the Private Securities
Litigation Reform Act of 1995, regarding the Company’s business or
financial condition. Actual results could differ materially from those
described in this news release as a result of numerous factors, some of
which are outside the control of the Company.
SOURCE Mountain Province Diamonds Inc.