FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of November__________________, 2002____
Commission File Number 0-27322
Mountain Province Diamonds Inc.
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(Translation of registrant's name into English)
Suite 212, 525 Seymour Street, Vancouver, British Columbia, Canada V6B 3H7
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ____ No |X|
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
MOUNTAIN PROVINCE DIAMONDS INC.
Suite 212 Telephone 604-687-0122
525 Seymour Street
Vancouver, B.C. V6B 3H7 Facsimile 604-684-7208
November 29, 2002
B.C. Securities Commission Ontario Securities Commission
Suite 200, 865 Hornby Street Cadillac Fairview Tower
Vancouver, B.C. Suite 1800
V6Z 2H4 P.O. Box 55
20 Queen St. West
Toronto, Ontario, M5H 3S8
Alberta Securities Commission
21st Floor
10025 Jasper Avenue
Edmonton, Alberta
T5J 3Z5
Dear Sir/Madam:
RE: MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Mailing on November 29, 2002
The Company confirms that on the above date the interim financial statements,
for the period ended September 30, 2002, were forwarded by prepaid first class
mail to all the shareholders who are mentioned on the supplementary list
maintained by the transfer agent of the Company.
Yours very truly,
"Pradeep Varshney"
Pradeep Varshney
Chief Financial Officer
Interim Consolidated Financial Statements of
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Three months and six months ended September 30, 2002 and 2001
Unaudited
Prepared by Management
In Canadian Dollars
INTERIM REPORT & MANAGEMENT'S DISCUSSION & ANALYSIS OF
FINANCIAL RESULTS
To Our Shareholders,
SUMMARY
-------
Mountain Province Diamonds Inc. (the Company) is a diamond exploration and
development company and has a 44.1% interest in the AK claims located in the NWT
of Canada. The Company and its partner, Camphor Ventures, entered into a
joint-venture agreement with De Beers Canada Exploration Inc. ("De Beers
Canada") formerly known as Monopros Ltd., a wholly owned subsidiary of De Beers
Consolidated Mines Ltd., on March 7th, 1997. Under the agreement De Beers Canada
has the right to earn up to 60% interest in the AK claims by taking the property
to commercial production.
De Beers Canada completed a major bulk sample of the 5034, Tuzo, Hearne and
Tesla pipes on April 6th, 1999. The modeled grades and modeled revenues ($ per
carat) for the 5034, Hearne and Tuzo pipes were reported in early 2000. De Beers
used these values in a desktop study to evaluate the cost of a conventional open
pit mine of the three pipes.
The desktop study showed that while the modeled rate of return for the mining of
the three main diamond pipes, namely the 5034, Hearne and Tuzo, is below the
rate of return needed to proceed to the next phase of work an increase in
diamonds revenues of only approximately 15% is needed to advance the project to
the feasibility stage. The quickest way to achieve this increase is to carry out
additional bulk sampling of the two highest value pipes (the Hearne and 5034) in
order to significantly increase the number of diamonds available for valuation
purposes. A C$10 million bulk sample program started in March 2001 and was
completed in May 2001. The modeled diamond values were reported on December
18th, 2002. The modeled values were down slightly from those reported for the
1999 bulk sample, but were consistent with or less than the drop in values in
the rough diamond market. The 9.9 carat diamond recovered from the 5034 pipe is
of high quality and top color and was valued at approximately US$60,000. As a
result of the discovery of this diamond, De Beers decided to do more bulk
sampling of the 5034 and Hearne pipes this past winter in order to recover more
high quality, top color diamonds. Drilling started on February 13th, 2002 and
was completed April 20th, 2002. The number and sizes of the diamonds recovered
from the 5034 and Hearne pipes were reported on September 4 and November 6,
respectively. Large diamonds were recovered and a significantly larger number of
diamonds greater than half a carat were recovered this year compared to the bulk
samples of 1999 and 2001.
AK Project
The purpose of the 2001 bulk sample was to significantly increase the number of
diamonds available for valuation purposes. The larger number of diamonds
available will increase the confidence in and the accuracy of the revenue per
carat (value per carat) modeling and will hopefully positively impact the
overall revenue per carat estimate.
It was observed at the Diamond Trading Company (DTC) that a population of high
quality diamonds (such as that of the 9.9 carat diamond) exists amongst the
diamonds recovered to date from the Hearne and 5034 pipes. This observation and
additional follow-up analysis of these diamonds led De Beers to the decision
that more bulk sampling of the Hearne and 5034 pipes was needed in 2002. More
high quality diamonds need to be recovered so that their size frequency
distribution can be determined more accurately. These high quality diamonds have
a large impact, especially the larger ones, on the revenue per tonne so the more
accurately their size frequency distribution is known, the greater the
confidence in and the accuracy of the revenue modeling. These high quality
diamonds offer upside potential to the values per carat. The occurrence of the
very valuable 9.9 carat stone poses the possibility that these stones could
occur regularly during production.
The 2002 bulk sample program of the 5034 and Hearne diamond pipes started on
February 13, 2002 and ended April 20, 2002. A total of six large diameter holes
were drilled into the 5034 pipe and five into the Hearne pipe. The same drill
(24 inch diameter) and the same drill method (a "diamond friendly" flood reverse
system) that was used in 2001 were used again this year. De Beers recovered a
total of 1215 carats from 836 tonnes of kimberlite from the 5034 pipe.
1
The number of diamonds recovered from the 5034 pipe in three different size
ranges (between 0.5 and 1 carat, greater than 1 carat, and greater than 2
carats) is shown in the table for all three bulk samples. In total, for the 2002
bulk sample, there are 70 diamonds weighing more than 1 carat, which include 21
greater than 2 carats, and 161 diamonds between half a carat and 1 carat. The
number of diamonds recovered in all three size ranges this year is
proportionately (to the total number of carats recovered) significantly greater
than those diamonds recovered in 1999 and 2001. The diamonds recovered from the
5034 pipe in 2001 were all from the east lobe and in 1999 nearly half were from
the east lobe. More specifically, when comparing the ratios of the number of
diamonds in each of the three size ranges to the total number of carats
recovered per lobe for the diamonds recovered in 2002 in the west and center
lobes, with those diamonds recovered in the east lobe in 1999 and 2001, it can
clearly be seen that the west and center lobes have a larger proportion of
diamonds greater than half a carat than the east lobe.
------------------- --------------------- ---------- -------------------- ------------------ ------------------ -------------------
Number of Number of
Number of diamonds diamonds Five largest
Bulk Sample Location in 5034 diamonds greater greater than 1 between 0.5 diamonds
Year (Lobe) Carats than 2 carats carat* and 1 carat (carats)
------------------- --------------------- ---------- -------------------- ------------------ ------------------ -------------------
7.0, 6.6, 5.9,
2002 west and center 1215 21 70 161 4.6, 4.6
------------------- --------------------- ---------- -------------------- ------------------ ------------------ -------------------
9.9, 4.5, 2.6,
2001 east 914 10 34 104 2.5, 2.4
------------------- --------------------- ---------- -------------------- ------------------ ------------------ -------------------
half east, west and 10.0, 4.90, 4.85,
1999 center 1005 10 42 113 3.9, 3.8
------------------- --------------------- ---------- -------------------- ------------------ ------------------ -------------------
* Includes those diamonds over 2 carats
De Beers recovered a total of 1174 carats from 665.5 tonnes of kimberlite from
the Hearne pipe. The number of diamonds recovered in three different size ranges
(between 0.5 and 1 carat, greater than 1 carat and greater than 2 carats), are
shown in the table for all three bulk samples. In total, for the 2002 bulk
sample, there are 50 diamonds weighing more than 1 carat, which include 13
greater than 2 carats, and 157 diamonds between half a carat and 1 carat. The
total number of diamonds greater than half a carat recovered this year (207) is
proportionately (to the total number of carats recovered each year) greater than
those size diamonds recovered in the 1999 and 2001 bulk samples. Specifically,
there are 31 percent more diamonds greater than half a carat as recovered in the
2001 bulk sample and 15 percent more than recovered in the 1999 bulk sample. The
largest diamond recovered between both the 1999 and 2001 bulk samples weighed
3.4 carats. In this years bulk sample there are three diamonds weighing more
than 3.4 carats with the largest weighing 8.7 carats. This shows that, like in
the 5034 pipe, larger diamonds are present in the Hearne pipe.
-------------------- ----------------- ------------------ ------------------ ------------------ ------------------
Number of Number of Number of
diamonds diamonds diamonds Five largest
Bulk Sample greater than greater than between 0.5 diamonds
Year Carats 2 carats 1 carat* and 1 carat (carats)
-------------------- ----------------- ------------------ ------------------ ------------------ ------------------
2002 1174 13 50 157 8.7, 6.4, 4.9,
3.4, 3.2
-------------------- ----------------- ------------------ ------------------ ------------------ ------------------
2001 751 6 27 74 3.4, 3.2, 2.5,
2.2, 2.2
-------------------- ----------------- ------------------ ------------------ ------------------ ------------------
1999 846 9 40 90 3.4, 3.1, 2.9,
2.7, 2.6
-------------------- ----------------- ------------------ ------------------ ------------------ ------------------
*Includes those diamonds over 2 carats
The number of diamonds available, especially the greater number of larger
diamonds, for valuation has now increased and will lead to more confidence in
the value per carat modeling. The diamonds will be sent to the Diamond Trading
Company (DTC) in London, England for valuation. Those values will be used to
model the values per carat in Johannesburg. After that, revenue per tonne
modeling, taking into account both the updated grade information and the diamond
values, will be performed. The modeled values per carat and modeled revenues per
tonne values for the 5034 and Hearne pipes are expected in early 2003.
The Company is very pleased with the results. The increase in the number of
larger diamonds recovered as compared to 1999 and 2001 will hopefully positively
impact the size-frequency curves and thus the modeled values.
2
Exploration
The management committee consisting of representatives from the Company and De
Beers that was formed after the release of the desktop study in August 2000,
decided upon a strategy with two main components to advance the project. The
first component was bulk sampling of the two main pipes to recover additional
diamonds. The second component was an aggressive exploration program aimed at
adding to the existing resource. Any additional kimberlite discoveries would
change the economics of the project and, if of sufficient value, positively
impact the modeled rate of return.
Exploration is concentrated in two areas; at MZ Lake, which is approximately 20
km northwest of Kennady Lake and at Faraday-Kelvin area, which is approximately
10 km northeast of Kennady Lake.
De Beers discovered several sills (shallow dipping kimberlite sheet-like bodies)
of various lengths, widths and thicknesses north of MZ Lake during the 2001
spring exploration. In the Spring 2002 exploration program, De Beers decided to
concentrate on the sill associated with drill hole MPV-01-073 (called sill-73)
because it had the most microdiamonds per kg of all the sills discovered so far
and because it has the potential of being one of the largest sills. A total of
10 follow-up holes were drilled into sill-73 and the kimberlite sill was
intersected in all of them. The recovered kimberlite was sent to Kimberley for
mircrodiamond recovery.
The Faraday body was discovered in 1999 and the Kelvin body (three km south of
Faraday) in 2000. A small sample (40 kg) of kimberlite from the Faraday body
returned 84 microdiamonds thus indicating the body to be highly diamondiferous.
A sample of kimberlite from the Kelvin body was sent to Kimberley for
microdiamond recovery. The results of the acid dissolution of the kimberlite and
microdiamond recovery for both the kimberlite from the MZ Lake sill and from the
Kelvin body should be out before the end of the year.
Warrants Exercise
De Beers Canada Exploration Inc. (De Beers Canada), a wholly-owned subsidiary of
De Beers Consolidated Mines Limited (De Beers), exercised their full allocation
of 983,666 share purchase warrants at $0.80 for a total proceeds of $786,932.80
on September 14, 2002.
De Beers now owns 3,160,643 shares or approximately 6.4% of the outstanding
shares of the company.
In addition, two other warrant holders exercised their full allocation of
755,066 share purchase warrants at $605,052.80 on October 24, 2002. One of the
warrant holders is Bottin International Investments Ltd., the largest
shareholder of the company.
Also, one warrant holder exercised its full allocation of 431,034 share purchase
warrants at $0.58, 200,000 on September 10, 2002 and 231,034 on November 12,
2002 for a total proceeds of $249,999.72.
Financial Results
The Company's loss for the six months ended September 30, 2002 totalled $563,225
or $0.012 per share compared to $869,380 or $0.019 per share for the six months
ended September 30, 2001. The Company's loss for the three months ended
September 30, 2002 was $283,434 or $0.006 per share compared to $418,220 or
$0.009 per share. This 35% and 32% decrease in loss respectively was because of
various cost constraints implemented by the Company.
At September 30, 2002, the Company had cash and cash equivalents of $1,073,134
compared to $585,879 on March 31, 2002. At September 30, 2002 the Company had a
working capital position of $729,565 compared to $339,897 on March 31, 2002. The
improvement in these positions is due to the previously mentioned exercise of
warrants and the exercise of 65,000 options for a total proceeds of $51,000, net
of normal operating costs.
During the six months ended September 30, 2002, the Company did not incur any
expenditures on the exploration of the AK-CJ property. Since March 8, 2000 De
Beers Canada has been bearing all expenditures for the AK-CJ project. During the
six months ended September 30, 2002 the Company did not incur any expenditures
on the exploration work of any other property.
3
Outlook
The Company is likely to continue incurring annual losses until it may achieve
production from the AK project. There is no assurance that the property will be
placed into development or production. The desktop study discussed above showed
that the modeled rate of return to mine the three main diamond pipes is below
the agreed upon rate of return needed to proceed to the next phase, but
sufficiently close to only require an increase in revenues of approximately 15%
to achieve the agreed upon rate. A strategy to advance the project was decided
upon at that time with the main component being the 2001 bulk sample to recover
additional diamonds. Final results and modeled figures from the 2001 bulk sample
were encouraging enough for De Beers Canada to commit to another bulk sample in
winter of 2002. The bulk sample program was completed in April 2002. The
management committee also decided to continue with the exploration of the sill
complex at MZ Lake during the spring of 2002, as well do more evaluation work on
the Tuzo pipe. The results of all programs should be available in the first
quarter of 2003 at which time the management committee will decide how to
proceed.
The risk factors have not changed from those described in the Company's Annual
Report for the year ended March 31, 2002.
The funds available on September 30, 2002 and the subsequent exercise of options
and warrants and options will provide the Company with sufficient funds until
late 2004.
"Jan W. Vandersande"
Jan W. Vandersande, Ph.D.
President
November 20, 2002
This report 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 report as a result of numerous
factors, some of which are outside of the control of the Company.
4
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Consolidated Balance Sheets
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September 30, March 31,
2002 2002
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(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 1,073,134 $ 585,879
Accounts receivable 16,116 38,679
Marketable securities 32,392 32,392
Advances and prepaid expenses 16,089 7,192
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Total current assets 1,137,731 664,142
Assets held for sale 100,000 100,000
Mineral properties 1,628,822 1,628,822
Deferred exploration 31,492,926 31,492,926
Capital assets 62,314 61,274
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Total assets $ 34,421,793 $ 33,947,164
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 283,422 $ 213,209
Due to related parties 118,864 99,036
Taxes payable 5,880 12,000
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Total current liabilities 408,166 324,245
Shareholders' equity:
Share capital (note 3) 54,424,379 53,470,446
Deficit (20,410,752) (19,847,527)
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Total shareholders' equity 34,013,627 33,622,919
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Total liabilities and shareholders' equity $ 34,421,793 $ 33,947,164
---------------------------------------------------------------------------------------------------
Subsequent events (note 5)
See accompanying notes to interim consolidated financial statements.
Approved on behalf of the Board:
"Paul Shatzko" Director "Jan W. Vandersande" Director
5
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Interim Consolidated Statements of Operations and Deficit
(Unaudited-Prepared by Management)
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Three months ended Six months ended
September 30, September 30,
2002 2001 2002 2001
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Revenue:
Interest $ 534 $ 5,442 $ 2,524 $ 10,143
Expenses:
Amortization 3,983 4,951 7,966 9,709
Capital taxes - (15,600) - (15,600)
Interest and bank charges 404 857 1,214 1,334
General and administration 262,986 430,454 521,032 877,080
Property evaluation & maintenance 14,514 - 33,456 -
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281,887 420,662 563,668 872,523
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Loss before income taxes (281,353) (415,220) (561,144) (862,380)
Income tax expense 2,081 3,000 2,081 7,000
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Loss for the period (283,434) (418,220) (563,225) (869,380)
Deficit, beginning of period (20,127,318) (18,842,806) (19,847,527) (18,391,646)
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Deficit, end of period $(20,410,752) $(19,261,026) $(20,410,752) $(19,261,026)
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Basic and diluted loss per share (note 4) $ (0.006) $ (0.009) $ (0.012) $ (0.019)
Weighted average number of
shares outstanding 48,125,295 46,230,492 47,997,054 46,198,032
------------------------------------------------------------------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
6
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Interim Consolidated Statements of Cash Flows
(Unaudited-Prepared by Management)
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Three months ended Six months ended
September 30, September 30,
2002 2001 2002 2001
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Cash provided by (used in):
Cash flows provided by (used in) operating activities:
Loss for the period $ (283,434) $ (418,220) $ (563,225) $ (869,380)
Items not involving cash:
Amortization 3,983 4,951 7,966 9,709
Changes in non-cash operating working capital:
Accounts receivable 12,760 (710) 22,563 8,786
Advances and prepaid expenses (7,544) (3,597) (8,897) 34,646
Accounts payable and accrued liabilities 93,073 63,222 70,213 33,816
Due to related parties 27,794 5,427 19,828 5,427
Taxes payable (6,120) 3,000 (6,120) 6,993
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Cash flows used in operating activities (159,488) (345,927) (457,672) (770,003)
Cash flows provided by (used in) investing activities:
Deferred exploration costs - - - (53,077)
Purchase of capital assets - (1,261) (9,006) (3,774)
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Cash flows used in investing activities - (1,261) (9,006) (56,851)
Cash flows provided by financing activities:
Shares issued for cash, net of commission 953,933 - 953,933 18,000
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Decrease in cash and cash equivalents 794,445 (347,188) 487,255 (808,854)
Cash and cash equivalents, beginning of period 278,689 620,527 585,879 1,082,193
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Cash and cash equivalents, end of period $ 1,073,134 $ 273,339 $ 1,073,134 $ 273,339
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Non-cash transactions:
Acquisiiton of Rabbit Tracks, Manitoba
property for issuance of 50,000 shares - - - $ 29,000
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See accompanying notes to interim consolidated financial statements.
7
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Interim Consolidated Statements of Deferred Exploration
(Unaudited - Prepared by Management)
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Three months ended Six months ended
September 30, September 30,
2002 2001 2002 2001
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Exploration
Airborne & geophysical survey - - - $ 28,764
Consulting & other professional services - - - 3,776
Linecutting - - - 12,000
Sampling & processing - - - -
Travel, transportation & supplies - - - 8,537
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Deferred Exploration for the period - - - 53,077
Deferred Exploration beginning of period 31,492,926 31,501,547 31,492,926 31,448,470
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Deferred Exploration, end of period $31,492,926 $31,501,547 $31,492,926 $31,501,547
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See accompanying notes to interim consolidated financial statements.
8
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Notes to Interim Consolidated Financial Statements
Three months ended September 30, 2002 and 2001
Six months ended September 30, 2002 and 2001
(Unaudited - Prepared by Management)
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1 Significant Accounting Policies:
These interim consolidated financial statements of Mountain Province
Diamonds Inc. (the "Company") have been prepared by management, and have
not been audited or reviewed by an independent public accountant. These
interim consolidated financial statements do not include all disclosures
required by Canadian generally accepted accounting principles for annual
financial statements, and accordingly, these interim consolidated financial
statements should be read in conjunction with the Company's most recent
annual consolidated financial statements. These interim consolidated
financial statements follow the same accounting policies and methods of
application as the Company's audited annual consolidated financial
statements as at and for the year ended March 31, 2002 except as described
below in Note 2.
2 Stock-based compensation:
Effective April 1, 2002, the Company adopted the new recommendations of the
Canadian Institute of Chartered Accountants with respect to the accounting
for stock-based compensation and other stock based payments. The new
recommendations are applied prospectively. As the Company did not grant any
options during the three and six month periods ended September 30, 2002,
the adoption of the new standard had no effect on the interim financial
statements.
The Company will account for all stock based payments to non-employees, and
employee awards that are direct award of stock, granted on or after April
1, 2002, using the fair value method. No compensation cost is recorded for
options granted to employees. Consideration paid by employees on the
exercise of stock options is recorded as share capital. The Company will
disclose the pro forma effect of accounting for these awards under the fair
value based method.
Under the fair value based method, stock-based payments to non-employees
are measured at the fair value of the consideration received, or the fair
value of the equity instruments issued, or liabilities incurred, whichever
is more reliably measurable. The fair value of stock-based payments to
non-employees is periodically re-measured until counterparty performance is
complete and any change therein recognized over the period and in the same
manner as if the Company had paid cash instead of paying with or using
equity instruments. The cost of stock-based payments to non-employees that
are fully vested and non-forfeitable at the grant date is measured and
recognized at that date.
9
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Notes to Interim Consolidated Financial Statements
Three months ended September 30, 2002 and 2001
Six months ended September 30, 2002 and 2001
(Unaudited - Prepared by Management)
-------------------------------------------------------------------------------
3 Share Capital:
(a) Issued and fully paid:
Number of shares Amount
---------------- ------
Balance, March 31, 2002 63,883,100 $ 70,286,927
Issued for cash pursuant to:
Exercise of stock options 65,000 51,000
Exercise of warrants 1,183,666 902,933
------------ ------------
65,131,766 71,240,860
Less shares owned by subsidiary (16,015,696) (16,816,481)
------------ ------------
Balance, September 30, 2002 49,116,070 $ 54,424,379
============ ============
(b) Stock options and share purchase warrants
During the six months ended September 30, 2002, the Company granted no
options to purchase common shares. During this period options to
purchase 1,081,000 shares expired unexercised.
On September 30, 2002 the Company had 2,515,000 stock options
outstanding and had the following share purchase warrants outstanding:
(i) To purchase 880,066 shares at a price of $0.80 per share until
October 24, 2002
(ii) To purchase 1,436,912 shares at a price of $0.58 per share
until December 6, 2004
4 Loss per share:
Loss per share has been calculated based on the weighted average number
of shares outstanding during the periods, net of shares owned by a
subsidiary.
5 Subsequent events:
(a) On October 21, 2002, the Company granted options to its directors to
purchase 125,000 common shares at an exercise price of $1.36 per share.
The expiry date of these options is October 21, 2007.
10
MOUNTAIN PROVINCE DIAMONDS INC.
(Formerly Mountain Province Mining Inc.)
Notes to Interim Consolidated Financial Statements
Three months ended September 30, 2002 and 2001
Six months ended September 30, 2002 and 2001
(Unaudited - Prepared by Management)
-------------------------------------------------------------------------------
5 Subsequent events (Continued):
(b) On October 10, 2002 the Company entered into an agreement with Vision
Gate Ventures Limited ("Vision") regarding the Haveri Gold Property,
Finland ("Property"), held by the Company's wholly owned subsidiary
Mountain Glen Mining Inc. Under the terms of the agreement Vision has
the option to earn up to an undivided 70% interest in the Property. In
order to exercise the option and earn the 70% interest in the Property,
Vision must:
i. incur expenditures on or in respect of the Property of not
less than $50,000 by October 10, 2003.
ii. incur expenditures on or in respect of the Property of not
less than an additional $600,000 by October 10, 2004 in order
to earn a 51% undivided interest in the Property. iii. incur
expenditures on or in respect of the Property of not less than
an additional $1,000,000 by October 10, 2005 in order to earn
a further 19% undivided interest in the Property.
(c) Subsequent to September 30, 2002, warrants to purchase 986,100 common
shares and options to purchase 170,000 common shares of the Company
were exercised for proceeds to the Company of $739,053 and $152,600
respectively.
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Mountain Province Diamonds Inc.
(Registrant)
Date December 2, 2002 By: /S/ "Pradeep Varshney"
---------------------- -----------------------------------
(Print) Name: Pradeep Varshney
Title: Chief Financial Officer