Stornoway Announces First Quarter Results

 Stornoway Diamond (TSX:SWY) announced its first quarter results results for the three months ending July 31,2014. In that period, the company announced it had registered a loss of $11.5 million but had completed a $946 million project financing transaction to fund the development of the Renard diamond project.

According to the press release, highlights of the first quarter include:

• Completed a precedent setting $946 million1 project financing transaction to fully fund the development of the Renard Diamond Project;
• Initiated project construction with a focus on site civil works, equipment procurement and camp construction. No major variances forecast to date against plan schedule or budget;
• Entered into an Engineering, Procurement and Construction Management contract with SNC Lavalin inc., including sub-contracted services to be provided by AMEC Americas Ltd. and DRA Americas Inc.;
• Confirmed the Renard 2 kimberlite extends to a vertical depth of at least 970 meters in an ongoing resource expansion drill program, 370 meters below the base of the current Mineral Reserve;
• Cash and cash equivalents of $438.3 million2 as of July 31st, 2014, with a loss for the quarter of $11.5 million, or $0.04 per share.

Matt Manson, president and CEO of Stornoway, said:

Stornoway’s first quarter of fiscal 2015 has been the most impactful in the Corporation’s history. We successfully closed the largest single project financing transaction for a publically listed diamond company comprised of debt, equity and stream, which is expected to fully fund the project to completion. With all major permitting authorizations, access infrastructure and funding in place, construction of the project has commenced expeditiously with mobilization proceeding on plan. At the same time, our drilling program is supporting our optimism on the resource potential of the Renard 2 kimberlite at depth.

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