TORONTO (miningweekly.com) – Precious-gem project developer Mountain Province Diamonds has raised C$100-million in private placements for use in the construction of the Gahcho Kué project, located in Canada’s Northwest Territories.

The TSX- and NYSE MKT-listed firm reported on Tuesday that a syndicate of underwriters led jointly by BMO Capital Markets, RBC Capital Markets and Scotia Capital had agreed to buy 15-million common shares on a bought-deal basis, at C$5 apiece for gross proceeds of C$75-million.

In parallel with the offering, Mountain Province stated that it intended to undertake a nonbrokered private placement of five-million common shares priced at C$5 apiece to Bottin (International) Investments and other qualified investors.

The offering and the nonbrokered placement were expected to close on or about October 16 and were subject to the company receiving all necessary regulatory approvals.

Mountain Province is a 49% participant with De Beers Canada in the Gahcho Kué joint venture (JV), at Kennady Lake. The project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 35.4-million tonnes, grading 1.57 ct/t for total diamond content of 55.5-million carats.

A 2014 National Instrument 43-101 feasibility study report had indicated that the Gahcho Kué project had an internal rate of return of 32.6%.

The Gahcho Kué JV had received a Class A land-use permit and Type A water licence, both being critical permits required to complete mine construction. Site preparation started in December and the overall project was on schedule for first production during the second half of 2016.

In July, the company appointed a syndicate consisting of three international banks – Deutsche Bank’s London Branch, Natixis and Nedbank – to arrange and underwrite a senior secured term loan facility of up to $370-million to fund the company's share of the remaining construction costs of the Gahcho Kué mine.

Subject to satisfying certain conditions, including completing due diligence, internal bank approvals and agreeing on facility documentation, the loan was expected to be finalised before the end of the year.