Canadian Mining Journal


Stornoway’s ‘good timing’ at Renard

Since it raised $946 million last July to build its Renard diamond mine in Quebec, Stornoway Diamond (TSX: SWY) has kept construction and engineering at the project on time and on budget.

In fact, the company has had to meet its milestones in order to access a total of US$250 million in upfront streaming payments that are part of the larger financing, said president and CEO Matt Manson at the company’s annual general meeting in October.

Stornoway has so far received two tranches of the streaming financing: US$80 million in March and U$80 million in September. Another US$90 million is still to come next March. …

The company is so far running ahead of plan, with construction 47.4% completed at the end of September as opposed to the scheduled 42.9%.

Stornoway has also come out ahead with the fall in the Canadian dollar. About half of its $946-million financing was raised in U.S. dollars at a time when the dollar was at US92¢.

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