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TORONTO (miningweekly.com) – The proponent of Quebec’s only diamond mine, Stornoway Diamond Corp, has conceded that it was in advanced negotiations with a number of parties regarding a comprehensive financing plan for its Renard diamond project, located in north-central Quebec, sending its shares up by as much as C$0.16 apiece on Thursday.
Despite the company affirming that it did not generally respond to rumours or media speculation, Stornoway said that management was encouraged with progress made in discussions to date.
It did, however, note that the outcome of such discussions was uncertain and subject to further negotiation and executing binding term sheets and definitive agreements, and receiving all applicable regulatory, shareholder and other approvals.
“There is no assurance that any transaction will result from these discussions, or as to the timing, structure or terms of any transaction (which may include any combination of debt, equity, forward sale of diamonds and other forms of financing) and no further comment will be forthcoming unless the situation so warrants,” Stornoway said in a statement.
The company cautioned investors that any statements or speculation made by parties other than Stornoway might be unsubstantiated, false or premature and Stornoway could not be responsible for any investment losses attributable to relying on such statements or speculation.
SHINING RENARD
The Renard diamond project is located about 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau, in the James Bay region of north-central Quebec.
The project hosts probable mineral reserves, as defined under National Instrument 43-101, at 17.9-million carats. Total indicated mineral resources, inclusive of the mineral reserve, are at 27.1-million carats, with a further 16.9-million carats classified as inferred mineral resources, and 25.7-million carats to 47.8-million carats classified as no-resource exploration upside. All kimberlites remain open at depth.
The November 2011 feasibility study included ramp and shaft access to the Renard underground mine. According to the optimisation study released in January 2013, shaft sinking will now be deferred until later in the mine life and access to the underground mine will be through a ramp only.
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