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RAPAPORT... Stornoway Diamond Corporation closed its financing transactions with Orion Mine Finance, Diaquem Inc. and Ressources Quebec, which are wholly-owned subsidiaries of Investissement Quebec, and the Caisse de depot et placement du Quebec for all funds related to completing the Renard diamond project. The financing package totals $886 million (CAD 946 million) through a combination of senior and subordinated debt facilities, equity issuances, an equipment financing facility with Caterpillar Financial and the forward sale of diamonds. Concurrent with the closing, approximately $435 million (CAD 464 million) in aggregate gross proceeds from the public and private offerings of subscription receipts and the private offering of convertible debentures has been released, which will allow Stornoway to immediately begin construction on the Renard project.
The Renard diamond project is located approximately 250 kilometers north of the Cree community of Mistissini and 350 kilometers north of Chibougamau in the James Bay region of north-central Quebec, Canada.
Probable mineral reserves, as defined in National Instrument 43-101, totaled 17.9 million carats, with indicated mineral resources, inclusive of the mineral reserve, totaled 27.1 million carats, with a further 16.85 million carats classified as inferred mineral resources. Between 25.7 million and 47.8 million carats were classified as non-resource exploration upside.
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