DIAMOND PROJECTS: Investors warm to icy gems

NORTHWEST TERRITORIES – Mountain Province Diamonds of Toronto has set out to raise $47.1 million via a rights offering for the Gahcho Kué project 300 km northeast of Yellowknife. The proceeds will fund the company’s 49% share of the 2013 capital costs for the project.

The offering involves the opportunity for each Mountain Province shareholder to receive one “right” for each share held. Investors will then be allowed to exchange six of the rights plus $3.50 for one share of the company before a yet to be announced expiry date.

Meanwhile, Mountain Province’s Gahcho Kué partner, Toronto-based De Beers Canada (51% and operator), is making a $2.5-million private investment in Peregrine Diamonds with the purchase of 3.33 million units at a price of $0.75 each. Each unit consists of one share and a purchase warrant for one-half share entitling De Beers to buy a common share in Peregrine for $2 for a period of 24 months. In addition, De Beers will make the $2.5-million payment to BHP Billiton next January for that company’s 51% interest in the Chidliak project on Baffin Island, Nunavut.

Information about Gahcho Kué is available at DeBeersCanada.com, and more about the Chidliak project is posted at PDiam.com.