Stornoway Diamond Corp said on Wednesday it has entered into a financing agreement with three parties, including a private equity group and the Quebec government, for C$944 million ($864.59 million) to build a mine at Stornoway's Renard diamond project in Quebec. The agreement lays out a series of proposed financing transactions for the mine, including US$360 million from the Orion Mine Finance Group, a mining-focused private equity business; C$220 million from Ressources Quebec, a subsidiary of the Quebec's investment agency; and C$105 million from the Caisse de depot et placement du Quebec, a large institutional fund manager in the province.The agreement also includes a public share offering and an equipment financing facility with Caterpillar Financial."Taken together, they represent the largest ever project financing package for a publicly listed diamond company," Stornoway said in a statement.Construction of a mine at the Renard diamond project in north-central Quebec is expected to begin this year with commercial production set for June 2016, according to Stornoway's website.
Stornoway Diamond Corporation is a diamond exploration and development company. Shares of SWY fell by 2.02% or $-0.02/share to $0.97. In the past year, the shares have traded as low as $0.49 and as high as $1.22. On average, 177243 shares of SWY.TO exchange hands on a given day and today's volume is recorded at 274550.
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