Mountain Province Diamonds Inc said it would repay De Beers Canada Inc C$59 million ($50.6 million) to settle its share of historic sunk costs related to the Gahcho Kue diamond project in Canada's Northwest Territories, Reuters reported.



The settlement is part of its amended joint venture agreement with De Beers regarding the Gahcho Kue diamond project, in which Mountain Province will have a 49% interest and De Beers will have a 51% interest.



According to Mountain Province's website, in the 2002 agreement, it had a 44.1% interest in the diamond mining project, while De Beers had a 51% interest and Camphor Ventures had a 4.9% interest.



Both companies have agreed to limit the sunk historic costs for the period ended December 31, 2008 to C$120 million.