Financing from MFE will enable Stornoway to begin construction of an all-season mining-grade access road to its Renard Diamond Project in 2013
As per the agreement, Québec will provide the credit facility at an annual interest rate of 3.35% for 15 years.
Québec will also offer an overrun facility of up to C$7.7m ($7.79m) at an annual interest rate of 6.3%.
The four stage construction of the proposed road is expected to complete by 30 June 2015, with Québec Ministère des Transports (MTQ) undertaking the first two ongoing segments and Stornoway commencing work on the last two segments in April 2013.
The road to Renard encompasses 240km on Route 167 into Québec’s Otish Mountains and will allow the company to commence mine construction immediately in the last quarter of 2013.
Renard diamond project contains probable mineral reserves of 18.0 million carats and inferred mineral resources of 17.5 million carats.
