Finance Agreement Between Stornoway and Québec Ministère des Finances et de l’Économie Completed

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.

Click here to read the Stornoway Diamond (TSX:SWY) press release

See this press release on Marketwire
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