(IDEX Online) - Stornoway Diamond Corporation said that the remaining tranches of financing announced on October 2 have been completed or approved for completion.
A $10 million private placement with Ressources Qu?(C)bec Inc. acting as agent for the government of Qu?(C)bec, was completed on December 7.
A 2-year deferral of principal payments on the Renard Mine Road Loan was authorized by the Qu?(C)bec government. The deferral represents additional liquidity to Stornoway of approximately $7 million.
The Financing Package represents additional consideration and liquidity for the Corporation of C$129 million by way of certain debt service cost deferrals over a 24-month period of $54 million, an amendment to the Renard diamond streaming agreement comprising a supplementary upfront deposit of $45 million in cash in exchange for certain sales and pricing considerations, and a $30 million private placement of common shares and warrants.
Matt Manson, President and CEO of Stornoway, stated "The two tranches of financing announced today with Ressources Qu?(C)bec and the Minist??re des Finances du Qu?(C)bec represent the final components of the overall $129 million financing arrangement announced in October. Both of these tranches have been approved for completion on the same terms as previously announced. We are pleased with the strong statement of support for Stornoway and the Renard Diamond Mine that this represents. With the balance sheet strengthened and the Renard mine fully ramped up, this comprehensive deal allows our team to focus fully on the long term operating and cash flow potential of the business."