TSX and NASDAQ: MPVD
TORONTO and NEW YORK, Jan. 30,
2020 /CNW/ - Mountain Province Diamonds Inc. ("Mountain
Province", the "Company") (TSX and NASDAQ: MPVD) today announces
that pursuant to its press release of August
13th, 2019, the Company has notified Nasdaq Stock
Market LLC ("Nasdaq") of its intention to voluntarily delist its
common shares from Nasdaq Stock Exchange ("NASDAQ").
The Company is currently out of compliance with Nasdaq Listing
Rule 5450(a)(1) which requires listed securities to maintain a
minimum bid price of US$1.00 per
share, and Listing Rule 5810(c)(3)(A) provides that a failure to
meet the minimum bid price requirement exists if the deficiency
continues for a period of 30 consecutive business days. The
Company has the option to apply for an additional 6 months
extension from NASDAQ for continued listing subject to conditions,
in order to regain minimum bid price of US$1.00 per share.
However, given that trading on the Toronto Stock Exchange ("TSX")
accounts for a vast majority of the Company's current daily trading
volume, the costs associated with maintaining this listing are no
longer justified.
The Company also expects to file a Form 25 with the Securities
and Exchange Commission (the "SEC") on February 10th, 2020, and the delisting
of the Company's shares is expected to be effective ten days
thereafter. Accordingly, the Company anticipates that the last day
of trading for the Company's shares on the NASDAQ will be on or
about February 10th, 2020
and that the shares will be suspended from trading prior to market
open on February 11th,
2020. The delisting will not affect the Company's continuing
obligation to file required reports with the SEC. However, the
Company also announced that it currently intends at a future date,
when permitted under SEC rules, to terminate the registration of
the Company's shares with the SEC.
The Company's shares will continue to trade on the TSX after the
NASDAQ delisting becomes effective. The Company will comply with,
and continue to be subject to, the laws of the Province of
Ontario, Canada, the jurisdiction
in which the Company is incorporated, as well as Canadian
securities laws and corporate governance rules applicable to
Canadian publicly listed companies, including the rules of the
TSX.
The Company is currently evaluating alternative platforms for
future listings in order to increase liquidity and will be updating
the market accordingly.
Mountain Province Diamonds Mountain Province Diamonds is
a 49% participant with De Beers Group in the Gahcho Kué diamond
mine located in Canada's Northwest
Territories. The Gahcho Kué Joint Venture property consists
of several kimberlites that are actively being mined, developed,
and explored for future development. The Company also
controls 67,164 hectares of highly prospective mineral claims and
leases immediately adjacent to the Gahcho Kué Joint Venture
property that include an indicated mineral resource at the Kelvin
kimberlite and inferred mineral resources for the Faraday
kimberlites.
Caution Regarding Forward Looking
Information
This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian and United
States securities laws concerning the business, operations
and financial performance and condition of Mountain Province
Diamonds Inc. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and mine life of the project of
Mountain Province; the realization
of mineral reserve estimates; the timing and amount of estimated
future production; costs of production; the future price of
diamonds; the estimation of mineral reserves and resources; the
ability to manage debt; capital expenditures; the ability to obtain
permits for operations; liquidity; tax rates; and currency exchange
rate fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking
statements. Many of these assumptions are based on factors
and events that are not within the control of Mountain Province and there is no assurance
they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Mountain
Province believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the
date of this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements.
Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the mineralization that will be
encountered as the property is developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province. Under its current note and revolving
credit facilities Mountain
Province is subject to certain limitations on its ability to
pay dividends on common stock. The declaration of dividends
is at the discretion of Mountain
Province's Board of Directors, subject to the limitations
under the Company's debt facilities, and will depend on
Mountain Province's financial
results, cash requirements, future prospects, and other factors
deemed relevant by the Board.
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SOURCE Mountain Province Diamonds Inc.
