Under the terms of the facility, the lender will finance $20m in two tranches to Stornoway, with initial tranche of $10m to be provided on or about 2 October 2013.
Stornoway will use the proceeds of the facility to finance development work at the diamond project as well as for general corporate purposes such as costs relating to Stornoway’s ongoing project financing activities.
Stornoway president and CEO Matt Manson said that the credit facility will provide good funding flexibility as Stornoway pursues project financing activities and starts the ramp-up to the capital programs, scheduled at Renard in 2014 and 2015.
"With major regulatory authorizations in hand and the Renard Mine Road now open for construction traffic, Stornoway’s primary objective is the timely conclusion of our principal project financing arrangements," Manson added.
