May 4, 2012: North Vancouver, BC – Stornoway Diamond Corp. (Stock Profile – TSX: SWY) announced that on May 3, 2012 it entered into a $20 million unsecured debt facility with the Fonds de solidarité FTQ, the Fonds régional de solidarité FTQ Nord-du-Québec, S.E.C. (collectively, the “Fonds”) and Investissement Québec, through its indirect wholly-owned subsidiary Diaquem Inc. (collectively with the Fonds, the “Lenders”). The proceeds of the facility shall be used to finance pre-development work at the Renard Diamond Project, including the initiation of detailed engineering, the ordering of long-lead mining equipment and the expansion of Stornoway’s Quebec based mining team. The loan has been provided 75% by the Fonds and 25% by Diaquem.
Matt Manson, Stornoway’s President and CEO, stated: ”This financing announcement is another important milestone in the development of Quebec’s first diamond mine. This loan will provide Stornoway with good funding flexibility as we begin the ramp-up to the capital programs anticipated at Renard in 2013 and 2014. We are particularly pleased to be able to announce the support of the Fonds in the development of the project, and the continued support of our major shareholder, Investissement Québec. Combined with our recent equity financings, Stornoway has now raised a total of $40 million since March in difficult market conditions. These funds have been raised in a ratio of 50% debt and 50% equity that is respectful of shareholder value. Our objective is to continue to move Renard ahead on schedule as we work to complete project permitting and senior project financing.”
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