Desmond diamonds in €40m rights offering
Mountain Province, the Canadian diamond firm backed by Dermot Desmond, has launched a near €40m rights offer to fund its share of the costs of its massive mining project.
Mountain Province has a 49 per cent stake of the Gahcho Kue diamond mine project in northern Canada, with De Beers owning the rest.
"Proceeds from the offering are expected to be sufficient to cover the company's share of the initial capital costs through to the completion of permitting of Gahcho Kue in 2013," according to the company documents.
Mr Desmond is the largest shareholder of Mountain province, with a 22 per cent stake held through his Bottin firm. It has indicated that it will take up all its rights.
Mountain Province also announced that it was in discussions with Bottin to "provide a stand-by commitment" to mop up any rights not taken up by shareholders.
The Gahcho Kue mine may cost as much as €600m to bring into full production, becoming the largest new diamond mine in the world.
Sunday Indo Business