[caption id="attachment_1003725068" align="aligncenter" width="463"] The processing plant at the Renard diamond mine in Quebec. (Image: Stornoway Diamond)
MONTREAL – Osisko Gold Royalties
and Stornoway Diamond
have amended the streaming agreement for diamonds from the Renard mine 350 km north of Chibougamau, Que.
Osisko will provide Stornoway with $21.6 million, representing Osisko’s share of an additional up-front deposit. Osisko will fund its share of the amended agreement through cash on hand during Q4 2018.
The amended streaming agreement is part of a $129 million financing package that will give Stornoway greater financial and operational flexibility. The financing includes the deferral of certain loan principal payments for 24 months, saving $54 million. The amended streaming arrangement will add approximately $53 million, and a private placement will raise between $10 million and $20 million.
Stornoway has streamed 20% of its diamond production to a group of investors including Osisko Gold (9.6%), Caisse de depot et placement du Quebec, Triple Flag Mining Finance Bermuda, Albion Exploration Fund, and the Washington State Investment Board.
The Renard mine is Quebec’s first and only diamond producer. Learn more at www.StornowayDiamonds.com.