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RAPAPORT... Stornoway Diamond Corporation reported a loss of $11.5 million during the first quarter that ended on July 31, and the company held cash and cash equivalents of $438.3 million. The junior mining company completed a $946 million financing deal during the period for its Renard diamond project. In addition, Stornoway initiated construction, procured equipment entered into an engineering, procurement and construction management contract with SNC Lavalin Inc., including sub-contracted services to be provided by AMEC Americas Ltd. and DRA Americas Inc.; and confirmed that the Renard 2 kimberlite extends to a vertical depth of at least 970 meters -- or 370 meters below the base of its current mineral reserve. Matt Manson, the president and CEO of Stornoway, said, "Stornoway's first quarter of fiscal 2015 has been the most impactful in the corporation's history. We successfully closed the largest single project financing transaction for a publicly listed diamond company comprised of debt, equity and stream, which is expected to fully fund the project to completion. With all major permitting authorizations, access infrastructure and funding in place, construction of the project has commenced expeditiously with mobilization proceeding on plan. At the same time, our drilling program is supporting our optimism on the resource potential of the Renard 2 kimberlite at depth." Mine development capital expenditures for the Renard project were $24.3 million during the period, against a total project capital cost estimate of $811 million. Stornoway's net loss was related to finance costs, a foreign exchange gain, the recognition of changes in the estimated fair value of embedded derivatives associated with the corporation's financing as well as transaction fees attributed to these derivatives. Since beginning construction on Renard in July, the project has moved ahead rapidly with no major variances and site activities have focused on the construction of dry pads at the principal surface facilities such as the permanent accommodation complex, process plant, power plant, machine shops and lay downs. A large borrow pit for construction aggregate has been established within the planned Renard 65 open pit area. Work has begun on the surface water management ditches, the potable water intake system and waste water treatment facilities, with temporary mine water treatment facilities commissioned and operational. Final gravel top coats have been completed on the Renard mine road and the airport, which is now receiving large aircraft, according to the firm. Temporary construction camps have been established with 250 beds, comprised of 110 beds at the site and 140 beds at two nearby road construction camps. On site manpower averaged 150 persons in August and is forecast to average 235 persons in September. Full completion of a 325 bed permanent accommodation complex and mine office is expected by the end of March 2015 ahead of major facilities construction beginning in April 2015. First ore is expected to be delivered to the plant in the second calendar half of 2016, in support of commercial production by the second calendar quarter of 2017.
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