Stornoway Diamond gets $475 million commitment to fund Renard project

By Lisa Kerner

Charlotte, N.C., Sept. 6 - Stornoway Diamond Corp. announced it entered into a mandate letter with seven financial institutions for potential senior debt financing totaling $475 million to fund its 100% owned Renard diamond project.

The financing strategy for the project, which is located in the James Bay region of North-Central Quebec, is based on a combination of senior project debt, equity and financing options tied to future diamond production, according to a company news release.

Stornoway said the mandate letter is the first step in financing the project.

The mandated lead arrangers are Bank of Montreal, Caterpillar Financial, Export Development Canada, Investissement Quebec, Nedbank Capital Ltd. (London Branch), Societe Generale (Canada Branch) and Bank of Nova Scotia.

Bank of Montreal was appointed administrative agent, and Societe Generale (Canada Branch) was appointed documentation agent.

"With our principal regulatory approvals expected shortly, financing arrangements proceeding and road construction ongoing, Stornoway is well positioned to follow through on the development of Renard starting next year," president and chief executive officer Matt Manson said in the release.

Based in Vancouver, B.C., Stornoway is a diamond exploration and development company.

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