TORONTO (miningweekly.com) – The developer of Quebec’s only diamond mine, Stornoway Diamond Corp, on Tuesday reported that it had closed a comprehensive C$946-million financing package that would see development of the Renard project through to production.
The financing transactions with Orion Mine Finance, Diaquem and Resources Quebec (wholly-owned subsidiaries of Investissement Quebec), and the Caisse de depot et placement du Quebec comprise a combination of senior and subordinated debt facilities, equity issuances, an equipment financing facility with Caterpillar Financial and diamond forward-sale contracts.
According to Stornoway, when taken together, these transactions represented the largest-ever project-financing package for a publicly listed diamond company.
Stornoway also reported that about C$464-million from the public and private offerings of subscription receipts and the private offering of convertible debentures was released to the corporation, allowing it to immediately start project construction.
The proceeds of the senior secured loan, the purchase and sale agreement for the forward-sale contracts, the equipment financing facility and the cost overrun facility (if and when needed) would be made available to Stornoway in due course.
Financial advisers Scotiabank and Dundee Capital Markets advised Stornoway on the financing transactions, while Norton Rose Fulbright was its legal adviser.