Stornoway Diamond Corporation has said that all the remaining tranches of its previously announced financing package of C$ 129 million have now been received with the completion of a $ 10 million private placement with Ressources Québec inc. (RQ), acting as agent for the Government of Québec.

The company said RQ subscribed for 28,571,428 units at a price of $ 0.35 per unit, each unit comprising one common share of the Corporation and one-half of a common share purchase warrant, with each whole warrant exercisable until December 7, 2023 for one Common Share at an exercise price of $ 0.455, subject to certain adjustments.

Simultaneously, the company also said that a 2-year deferral of principal payments on the Renard Mine Road Loan (also part of the package) was authorized by the Québec government, which represents additional liquidity to Stornoway of approximately $ 7 million.

The total Financing Package of C$ 129 million comprises certain debt service cost deferrals over a 24-month period of $54 million, an amendment to the Renard diamond streaming agreement comprising a supplementary upfront deposit of $45 million in cash in exchange for certain sales and pricing considerations, and a $30 million private placement of common shares and warrants.

Matt Manson, President and CEO of Stornoway, stated, “We are pleased with the strong statement of support for Stornoway and the Renard Diamond Mine that this represents. With the balance sheet strengthened and the Renard mine fully ramped up, this comprehensive deal allows our team to focus fully on the long term operating and cash flow potential of the business.”