Stornoway Closes $886M Renard Mine Financing

(IDEX Online) – Stornoway Diamond Corporation has closed its previously announced financing transactions with Orion Mine Finance, Diaquem Inc. and Ressources Québec (wholly-owned subsidiaries of Investissement Québec), and the Caisse de dépôt et placement du Québec.

The financing transactions are intended to provide a comprehensive funding package for the construction of the Renard diamond project. In total $886 million has been funded, or committed for funding, through a combination of senior and subordinated debt facilities, equity issuances, an equipment financing facility with Caterpillar Financial, and the forward sale of diamonds. Taken together, these transactions represent the largest ever project financing package for a publicly listed diamond company, the firm said.

Together with the closing of the financing today, approximately $434 million in aggregate gross proceeds from the public and private offerings of subscription receipts and the private offering of convertible debentures has been released to the Stornoway (subject to the payment of certain transaction costs) to allow the immediate commencement of project construction.

The proceeds of the senior secured loan, the purchase and sale agreement for the forward sale of diamonds, the equipment financing facility and the cost overrun facility (if and when needed) will be made available to Stornoway in due course in accordance with their terms, the company added.

The Renard diamond project is located in the James Bay region of north-central Québec.

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.