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RAPAPORT... Stornoway Diamond Corporation closed its previously announced agreement to acquire the remaining 50 percent stake in the Renard diamond project from DIAQUEM. Stornoway issued DIAQUEM common voting shares equal to 25 percent of Stornoway's issued and outstanding common shares, and newly-created non-voting convertible shares, which if cully converted, would bring DIAQUEM's interest in Stornoway would be equal to 37 percent. DIAQUEM is a wholly-owned subsidiary of Soquem, a subsidiary of Investissement Quebec.
Stornoway now expects to complete a feasibility study and environmental impact report on its fully owned Renard diamond project at some point in the third quarter of 2011. In addition, the mining company expects construction to commence this year on Route 167 Extension, which would provide year-round access to Renard, as opposed to more restrictive winter ice roads.
As part of the acquisition, Stornoway increased its number of board members by one, adding Jean-Jacques Carrier, a senior vice president of Investissement Quebec. The board of directors will appoint two additional directors as nominees of Investissement Quebec.
Concurrently, Stornoway appointed Ebe Scherkus, president of Agnico-Eagle Mines Limited, to the board in the place of David Garofalo, president of Hudbay Minerals. Eira Thomas will assume the role of non-executive chairman of the newly constituted board.
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