April 9 Stornoway Diamond Corp said on
Wednesday it has entered into a financing agreement with three
parties, including a private equity group and the Quebec
government, for C$944 million ($864.59 million) to build a mine
at Stornoway's Renard diamond project in Quebec.
The agreement lays out a series of proposed financing
transactions for the mine, including US$360 million from the
Orion Mine Finance Group, a mining-focused private equity
business; C$220 million from Ressources Quebec, a subsidiary of
the Quebec's investment agency; and C$105 million from the
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.
"Taken together, they represent the largest ever project
financing package for a publicly listed diamond company,"
Stornoway said in a statement.
Construction of a mine at the Renard diamond project in
north-central Quebec is expected to begin this year with
commercial production set for June 2016, according to
Each element of the complex financing deal, which includes
debt, equity and streaming finance, is conditional upon
completing the others. Streaming involves the forward sale of a
commodity usually at a set price in exchange for upfront
Stornoway's financial advisors were Scotiabank and Dundee
Capital Markets Inc.
Stornoway's stock closed at 97 Canadian cents on Wednesday,
down 2 Canadian cents.
($1 = 1.0919 Canadian Dollars)
(Reporting by Nicole Mordant in Vancouver; Editing by David