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RAPAPORT... Shares in Stornoway Diamond Corporation surged 22 percent just this week to set a new high of $1.22 along with reflecting record trading volume on the Toronto Stock Exchange, prompting the company to issue a cautionary statement. In the early afternoon hours of April 1, Stornoway Diamond's shares were up 88 percent year on year to $1.12, but they were down 7 percent from the opening bell, and the volume of trading was nearly five times the 52-week average.
Stornoway Diamond Corporation confirmed that it was aware of the unusual trading activity and that it is in advanced negotiations with a "number of parties" regarding a comprehensive financing plan for its Renard diamond project. However, the company added that the outcome of these financing discussions remains "uncertain and subject to further negotiation and conclusion of binding term sheets and definitive agreements, and receipt of all applicable regulatory, shareholder and other approvals."
Investors were cautioned that any statements or speculation made by parties other than Stornoway Diamond may be unsubstantiated, false or premature and the company cannot be responsible for losses attributable to reliance on those statements, according to the board.
The Renard diamond project estimated indicated mineral resources, inclusive of the mineral reserve, at 27.1 million carats, with a further 16.9 million carats classified as inferred mineral resources. There are between 25.7 million to 47.8 million carats classified as non-resource exploration upside. All kimberlites remain open at depth.
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