Specifically, the company had set up a binding financing commitment agreement under which three parties — private equity firm Orion Co-Investments I, the
Today, Stornoway announced that it has closed those transactions. That of course, means the company now has enough money to take Renard through to production.
It also means that Stornoway has closed the “largest ever project financing package for a publicly listed diamond company,” which is no small feat. Indeed, there was some concern when the package was announced that it wouldn’t go through given that each transaction was dependent on the others.
Now that it has, however, it’s full steam ahead. The company said when it first announced the financing package that plant commissioning is expected in the third quarter of 2016, and commercial production should be achieved by 2017's second quarter. All told, Renard is expected to produce 1.6 million carats per year over the course of an 11-year reserve-based mine life.
Ultimately, that’s good news not only for
It will also benefit the global diamond industry. Sterck noted that diamond supply ”is incredibly limited” — “[t]here’s Renard in
Investors would thus do well to keep an eye on
Securities Disclosure: I,
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