QUEBEC – Montreal-based Stornoway Diamond Corp. has drawn down the first US$80 million tranche of diamond stream funding supplied by Orion Mine Finance and the Caisse de depot et placement du Quebec. Two more tranches are to be drawn down in September 2015 and March 2016, assuming certain conditions are met.
Orion and the Caisse committed a total of US$250 million in upfront stream payments as part of the C$946-million deal to finance development of the Renard diamond mine 350 km north of Chibougamau.
At the end of January 2015, Stornoway had cash, cash equivalents and short term investments worth C$322 million, enough to fund the Renard project past the end of this year. After the stream payments are drawn down, the company will access a C$100 million senior secured loan late next year to complete mine development. Preconstruction costs will be C$811 million.
Commercial production at Renard is scheduled for Q2 2017. More infomration is posted at StornowayDiamonds.com.