Stornoway Diamond Corporation (TSX:SWY) announced that its wholly-owned subsidiary Les Diamants Stornoway (Canada) Inc. completed a Financing Agreement with the Québec Ministère des Finances et de l’Économie. In the Agreement, Québec Ministère des Finances et de l’Économie will finance Stornoway’s construction of a mining-grade access road to the Renard Diamond Project, pursuant to a Framework Agreement and associated Letter of Intent previously executed between Québec and Stornoway.
As quoted in the press release:
The Framework Agreement and the now-completed Financing Agreement are designed to ensure all-season road access to Renard during 2013. Features of the Financing Agreement are as follows:
- Québec to provide Stornoway with a credit facility of up to C$77m (“Loan A”) to complete the road construction work, at an annual interest rate of 3.35% percent, for a term of 15 years, with repayment beginning 48 months following first disbursement, and deferrable up to 2 years due to any delay in the attainment of commercial production at Renard past July 1, 2016.
- Québec to provide Stornoway an additional overrun facility of up to C$7.7m (“Loan B”), at an annual interest rate of 6.3% percent, with repayments concurrent with Loan A.
- Stornoway undertakes to complete construction of the Renard Mine Road no later than June 30, 2015, subject to certain terms, including terms of the previously announced Framework Agreement.