Mountain Province Diamonds Transfers Gahcho Kué Stake to De Beers

Mountain Province Diamonds transferred its 49% stake in the Gahcho Kué diamond mine in Canada’s Northwest Territories to its partner, De Beers. Under the terms of the agreement, De Beers assumes all of Mountain Province's share of decommissioning, reclamation, and environmental clean-up costs, along with other outstanding debts.

This restructuring comes as the company faces financial strain caused by a material decline in diamond prices and rising competition from lab-grown stones. To further stabilize its balance sheet, Mountain Province secured a six-month suspension of interest and principal repayments from its lender, Dunebridge, and other noteholders.

CEO Jonathan Comerford stated that the move "removes all liabilities, provides greater certainty for the employees and communities connected to Gahcho Kué and preserves rights that allow Mountain Province to participate again in the mine’s future."

The financial pressure on Mountain Province mirrors a broader industry trend. On the same day as the announcement, Petra Diamonds launched a strategic review to address its own liquidity pressures.