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To: Goose94 who wrote (11971)	3/16/2015 7:31:14 PM
From: Goose94	Respond to of 203376

Diamonds not forever The gems failed to enrich Zimbabwe and now its resources are running out Zimbabwe’s vow to merge all the country’s diamond miners into one state-led entity follows reports that the country’s largest diamond-producing region has largely played out. The Marange fields, once considered the world’s biggest diamond-producing area by volume, has left Zimbabwe little if anything to show. Much blame has been directed at the government. Now that same government rationalizes its planned merger on the basis of transparency. The mining minister’s announcement, reported by Reuters on March 12, gives companies until March 16 to respond. The idea had been discussed previously but was originally directed at six companies working in the Marange, where the government already holds a slightly better than 50% stake. The plan now encompasses every diamond miner in the country, including Rio Tinto (RIO-NY) 78%-held Murowa mine. Earlier this month Zimbabwean finance minister Patrick Chinamasa told parliament he’s not expecting diamond revenue this year because, as NewZimbabwe.com stated, Marange’s resources are depleted and miners have no capacity to dig deeper. The journal added, “When the Marange diamonds were ‘discovered’ around 2005, then-mines minister Obert Mpofu claimed that Zimbabwe would earn $2 billion annually from the gems. Mpofu famously boasted that the country would never again need to beg for financial help.” Yet Zimbabwe still depends on handouts from the West and China, which has invested widely in the country. Meanwhile accusations of corruption persist. In one example, president Robert Mugabe’s inner circle stands accused of “perhaps the biggest single plunder of diamonds the world has seen since Cecil Rhodes,” stated human rights watchdog Partnership Africa Canada in November 2012. “Conservative estimates place the losses due to illicit activity at over $2 billion since 2008.” PAC noted Mpofu’s “unexplained wealth,” exhibited by a conservative estimate of $20 million in personal spending, mostly in cash, over the previous three years. Accusations hardly stop there. Last July Mpofu tried to deflect charges of demanding a $10-million bribe from diamond miners by pointing out his accusers also faced charges—of defrauding the government of $2 billion, the Zimbabwe Herald reported. After Chinamasa announced Marange’s depletion earlier this month, opposition critics again raised accusations of government corruption. Chinamasa didn’t deny the allegations, but offered a strange rationale. “Sanctions have caused corruption and other vices you are talking about,” NewZimbabwe.com quoted him. “Business is no longer done directly due to sanctions and for your own information these illegal measures were put on us not because of human rights violations but because we had taken back our land.” The sanctions followed concerns from organizations like PAC, which called Zimbabwe and Angola “the main perpetrators of diamonds-related human rights abuses, as their governments have waged violent campaigns to control lucrative diamond fields.” Nor did Zimbabwe do well after the EU lifted its embargo in 2013. Last September Belgian authorities confiscated Zimbabwean diamonds up for auction in Antwerp, following a $500-million suit by Amari Platinum Holdings over a cancelled mining concession. The following month diamond miners warned they would face “collapse” if Zimbabwe adds a new 15% dividend to their government payments. Analyst Paul Zimnisky estimates 2013 Marange output at nearly 17 million carats. Pointing out that neither the government nor miners release production figures, he stated anecdotal evidence suggests this year’s production will fall to between six million and 10 million carats averaging a low $45 per carat. Continued U.S. sanctions, he stated, “has resulted in Marange diamonds trading at a discount to global market prices.” As for the planned miners’ merger, it would come under a Zimbabwean government affiliate, Zimbabwe Mining Development Corp, “which has mining partnership agreements with quasi-private entities, most of which are thought to have ties with Zimbabwe ex-military and political officials,” Zimnisky added. A diamond-rich neighbour has fared considerably better. Botswana took advantage of its resources to face up to the once-indomitable De Beers, taking a 15% share of the global giant. Through 50/50 joint ventures with De Beers, the country holds a bigger stake in its Botswana mines. The country won another historic victory when it persuaded De Beers to transfer its sorting and sales operations to the capital city of Gaborone. The move was part of a government goal to make the country a global “mines-to-market hub.” De Beers credited diamonds with 25% of Botswana’s GDP in 2013 and 75% of exports that year. But in last November’s state of the nation address, President Seretse Khama Ian Khama called for greater diversification, warning that diamonds alone can’t sustain the economy, allAfrica.com reported. Even so, “We will remain a leading global producer over the next three decades until at least 2050.”

To: Goose94 who wrote (11971)	3/31/2015 8:17:26 AM
From: Goose94	Read Replies (1) \| Respond to of 203376

Mountain Province Diamonds (MPV-T) C$95M Rights Offering Completed and Oversubscribed March 31, '15 - NR Mountain Province Diamonds today announced the successful completion of the previously announced C$95M rights offering (the "Offering"), which expired at 5 p.m. on March 30, 2015. A total of 125,631,285 rights were exercised under the basic subscription privilege for 22,079,247 common shares. In addition, a further 4,014,419 common shares were subscribed for under the additional subscription privilege. The combined basic and additional subscriptions represent an oversubscription against the 23,761,783 common shares available under the Offering. The subscribers for common shares under the additional subscription privilege have received their pro rata entitlement to the 1,682,536 common shares remaining under the Offering after the allocation of 22,079,247 common shares under the basic subscription privilege. A total of 23,761,783 common shares have been issued under the Offering. As the Offering was fully-subscribed, the Company's major shareholder, Mr. Dermot Desmond, who entered into a standby agreement with the Company in connection with the Offering, will not subscribe for any additional shares under the Offering pursuant to the standby commitment. Patrick Evans, Mountain Province President and CEO, commented: "We are very pleased with the exceptionally strong support our rights offering received from shareholders. We also thank our major shareholder, Mr. Desmond, for the support provided through the standby guarantee." The proceeds of the Offering will be used to fund a US$75M cost overrun facility, the arrangement of which is a condition precedent to drawdown of the previously announced US$370M term loan facility. Finalization of the term loan facility remains subject to finalization of the facility documentation, which is expected shortly. ** Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The Gahcho Kué 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 carats per tonne for total diamond content of 55.5 million carats. Gahcho Kué is the world's largest and richest new diamond development project. A 2014 NI 43-101 feasibility study report filed by Mountain Province (available on SEDAR) indicates that the Gahcho Kué project has an IRR of 32.6%. The Gahcho Kué Joint Venture has received approval for a Class A Land Use Permit and Type A Water License, permits required for the completion of construction of the Gahcho Kué diamond mine. Site preparation commenced in December 2014 and the overall project is on schedule for first production during H2 2016. Qualified Person** This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101. SOURCE Mountain Province Diamonds Inc. Mountain Province Diamonds Inc.: Patrick Evans, President and CEO, 161 Bay Street, Suite 2315, Toronto, Ontario M5J 2S1, Phone: (416) 361-3562, E-mail: info@mountainprovince.com , www.mountainprovince.com