November 25, 2009
Shares Issued and Outstanding: 63,297,746
Toronto, November 25, 2009 - Mountain Province Diamonds Inc. ("Mountain Province") (TSX: MPV, AMEX: MDM) announces that in connection with its previously announced public offering on November 24, 2009 it has today entered into an underwriting agreement with a syndicate of underwriters, co-led by Paradigm Capital Inc., Salman Partners Inc., and Scotia Capital Inc. to sell 1,851,852 units ("Units") at a price of C$2.70 per Unit to raise gross proceeds of C$5 million pursuant to a short form prospectus. Each Unit will consist of one common share and one half common share purchase warrant, with each whole warrant entitling the holder to acquire one additional common share at an exercise price of C$3.20 per share for a period of 18 months following the closing of the offering. In addition, Mountain Province has granted the underwriters an over-allotment option to purchase up to that number of additional Units or warrants (or a combination thereof) equal to 15% of the Units sold pursuant to the offering, exercisable at any time up to 30 days from the closing of the offering.
Mountain Province intends to use the net proceeds from the offering to complete a feasibility study in respect of the Gahcho Kué project and for general working capital purposes.
The offering is scheduled to close on or about December 8, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange, the NYSE AMEX and the securities regulatory authorities.
Located in Canada's Northwest Territories, Gahcho Kué is one of the largest new diamond projects under development globally. The project consists of a cluster of kimberlites, three of which have an indicated resource of approximately 30.2 million tonnes grading at 1.67 carats per tonne (approximately 50.5 million carats) and an inferred resource of approximately 6 million tonnes grading at 1.73 carats per tonne (approximately 10.3 million carats). Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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.
THIS IS NOT AN OFFER FOR SALE, OR A SOLICITATION OF AN OFFER TO BUY, IN THE UNITED STATES OR TO ANY "U.S. PERSON," AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED OF ANY EQUITY SHARES OR ANY OTHER SECURITIES OF THE COMPANY.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mountain Province Diamonds Inc.
Patrick Evans, President and CEO
401 Bay Street, Suite 2700
Toronto, Ontario M5H 2Y4
Phone: (416) 361-3562
Fax: (416) 603-8565