Stornoway Diamond Corp. Closes Public Offering, Private Placement

Stornoway Diamond Corporation (TSX:SWY) has closed the previously announced public offering of 188,600,000 subscription receipts at a price of C$0.70 per subscription receipt for total gross proceeds of C$132.02 million. The subscription receipts are anticipated to commence trading Friday May 23rd under the ticker symbol TSX:SWY.R.

As quoted in the press release:

Stornoway is also pleased to announce the closing of its previously announced private placements (the “Private Placements”) of 345,539,916 subscription receipts (the “Private Placement Subscription Receipts”), at a price of C$0.70(1) per Private Placement Subscription Receipt for aggregate gross proceeds of C$241.88m(2). The Private Placements consist of subscriptions of 171,254,203 Private Placement Subscription Receipts by Orion Co-Investments I LLC (“Orion”), 142,857,142 Private Placement Subscription Receipts by Ressources Québec Inc. (“RQ”), a wholly-owned subsidiary of Investissement Québec, and 31,428,571 Private Placement Subscription Receipts by Caisse de dépôt et placement du Québec (“CDPQ”).

Stornoway CEO, Matt Manson, said:

The successful closing of the public offering of subscription receipts is an important milestone for Stornoway, and a precondition for the completion of the overall project financing agreement announced on April 9th. This agreement contemplates financing commitments to fully fund the Renard Diamond Project through construction to the declaration of commercial production, including all contingencies, capital escalation allowances, working capital requirements, and financing costs. We look forward to submitting the balanced package of equity, debt and streaming agreement that we have arranged to our shareholders for their approval at a special meeting to be held in Montreal on June 26, 2014. Principal project construction is expected to commence upon the receipt of shareholder approval and the satisfaction of all remaining transaction conditions, including the completion of definitive documentation.

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