Stornoway Diamond Corporation (TSX:SWY) is set to commence early construction of the Renard Mine Airport. The Renard Mine Road is expected to be completed significantly below budget, and an agreement has been reached with the Government of Québec to allow the residual amount of the financing facility established for the construction of the road to be utilized for the immediate construction of the Renard Mine Airport.
As quoted in the press release:
Stornoway is now forecasting the cost to complete the Renard Mine Road at $70 million, approximately 10% below budget. Stornoway and Québec have agreed that the balance of funds within the base credit facility of $77 million may be drawn for the construction of the Renard Mine Airport. The airport’s capital cost estimate contained within the January 2013 Renard Optimization Study was $15.5 million, including all site infrastructure and operating facilities. Given the competitive cost environment currently existing in Québec for major capital projects, and the on-site presence of Stornoway’s contractors, fuel and equipment already mobilized for road construction, Stornoway has estimated that sufficient funds will be available within the road credit facility for the completion of all major civil works at the airport, well within budget and schedule. Work will commence immediately.