Stornoway Announces Renard Mine Completion Certification
LONGUEUIL, Québec, Feb. 07, 2018 — Stornoway Diamond Corporation(TSX:SWY) (the “Corporation” or “Stornoway”) is pleased to announce the attainment of full Completion Certification (“Completion”) at the Renard Mine.
Under the terms of Stornoway’s July 2014 material project finance agreements, including the senior secured loan agreement with Diaquem Inc. (a wholly-owned subsidiary of Ressources Québec) and the Renard streaming agreement, Completion entails the delivery of certificates for the mine’s physical facilities, the attainment of certain sustained production targets and operating cost efficiencies, certification on the performance of the Corporation’s diamond marketing activities, and certification of compliance with the terms of the Corporation’s material finance agreements. Completion further entails the satisfaction of certain financial covenants contained within the material project finance agreements, including projected and historical debt service ratios, tangible net worth and Mineral Reserve tail ratios.
Matt Manson, President and CEO, commented: ”Formal completion certification at the Renard Mine has been achieved within the normal-course schedule established in our project finance agreements. This is a testament to the excellent construction and operating performance of the Renard Mine team over the last three years, with cost, schedule and mine production targets all being achieved within plan, and solid cash operating margins achieved at the project level. With this significant achievement behind us, our focus looking forward will be realising the strong cash flow potential of the Renard Mine through continued process improvement in our diamond recoveries and growth in our mine production.”
Completion certification at the Renard Mine has been provided by Roscoe Postle Associates, as Independent Engineer, based on mine performance in the 90 day period ended December 31, 2017.
About the Renard Diamond Mine
The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and production company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. A growth oriented company, Stornoway owns a 100% interest in the world-class Renard Mine, Québec’s first diamond mine.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ “Matt Manson”
President and Chief Executive Officer
For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x2101
or Orin Baranowsky (CFO) at 416-304-1026 x2103 or Jodi Hackett (Manager, Communications) at 416-304-1026 x2104 or toll free at 1-877-331-2232
Pour plus d’information, veuillez contacter M. Ghislain Poirier, Vice-président Affaires publiques de Stornoway au 418-254-6550, firstname.lastname@example.org
** Website: www.stornowaydiamonds.com Email: email@example.com **