The company has signed a deal with syndicate of underwriters which will buy 15,000,000 of its common shares at a price of C$5 ($4.49) per unit for proceeds of C$75m ($67.37m).
The underwriters are led jointly by BMO Capital Markets, RBC Capital Markets and Scotia Capital.
In addition, 5,000,000 common shares will be sold through a non-brokered private placement to Bottin (International) Investments at $4.49 per unit.
Mountain Province plans to use the proceeds for general corporate purposes as well.
Subject to regulatory approvals, both the transactions are expected to close on or about 16 October.
Located in Northwest Territories, Canada, Gahcho Kué diamond project is a joint venture of Mountain Province Diamonds and De Beers Canada, with each holding 49% and 51% stakes, respectively.
Last month, the project secured Type A water license from the Minister of Environment and Natural Resources of the Northwest Territories and Type A land use permit from the Mackenzie Valley Land and Water Board in August.
