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Stornoway Secures $867M for Renard
Apr 10, 2014 6:34 AM
By Deena Taylor
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RAPAPORT... Stornoway Diamond Corporation entered into a financing agreement to raise $866.9 million (CAD 944 million) for construction at its Renard diamond project in Quebec.
Under the terms of the agreement, which is comprised of a combination of debt, equity and stream financing, the various funding commitments comprise of $360 million from private equity group Orion Finance, $202 million from Ressources Québec, a wholly-owned subsidiary of Investissement Québec and $96.4 million from Caisse de depot et placement du Quebec, a large institutional fund manager in the province.
The agreement also includes a public share offering and an equipment financing facility with Caterpillar Financial.
Each element of the financing transaction is conditional on the completion of the others and the successful completion of the marketed subscription receipt offering. Additional closing conditions include approval from Stornoway's shareholders and the settlement of definitive agreements.
Taken together, they represent the largest ever project financing package for a publicly listed diamond company, Stornoway stated.
The financing agreement was designed to provide full funding to project completion. Construction at Renard is slated to begin in June this year with commercial production expected to commence in the third quarter of 2016.
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Tags:
Deena Taylor, diamonds, renard, stornoway
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