Stornoway Closes $132M Public Offering For Renard Project

(IDEX Online News) – Stornoway Diamond Corporation has closed a previously announced public offering that has raised $132 million to fund work at its Renard diamond project. 

Stornoway’s President and CEO Matt Manson said: “The successful closing of the public offering of subscription receipts is an important milestone for Stornoway, and a precondition for the completion of the overall project financing agreement announced on April 9. This agreement contemplates financing commitments to fully fund the Renard Diamond Project through construction to the declaration of commercial production, including all contingencies, capital escalation allowances, working capital requirements, and financing costs.

“We look forward to submitting the balanced package of equity, debt and streaming agreement that we have arranged to our shareholders for their approval at a special meeting to be held in Montreal on June 26. Principal project construction is expected to commence upon the receipt of shareholder approval and the satisfaction of all remaining transaction conditions, including the completion of definitive documentation.”

The Renard project is located in the James Bay region of north-central Québec. In November 2011, Stornoway released the results of a Feasibility Study at Renard, followed by an Optimization Study in January 2013, which highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life.

Probable Mineral Reserves stand at 17.9 million carats. Total Indicated Mineral Resources, inclusive of the Mineral Reserve, stand at 27.1 million carats, with a further 16.85 million carats classified as Inferred Mineral Resources, and 25.7 to 47.8 million carats classified as non-resource exploration upside.