Stornoway Announces $22 Million Private Placement to Close Within 21 Daysadmin
On July 16, 2008, Stornoway Diamond Corporation (Toronto:SWY.TO) announced that, subject to negotiating the definitive subscription agreement and receiving all necessary approvals, it intends to effect a $22 million private placement (the “Private Placement”) comprising 24,444,444 common shares at a price of $0.90 per common share split equally between Agnico-Eagle Mines Limited (“Agnico-Eagle”) and Lorito Holdings Limited (“Lorito”). The proceeds of the Private Placement will be used to redeem the $10 million principal amount of convertible debentures held by each of Agnico-Eagle and Lorito.
The Issuer hopes to close the Transaction in fewer than 21 days from the date of the material change report filed with respect to this transaction. The Issuer believes that closing the Transaction in such period is necessary or reasonable in order to avoid continuing to incur interest charges under the Debentures.
Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada’s leading diamond exploration and development companies, involved in the discovery of over 150 kimberlites in seven Canadian diamond districts. The Corporation benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond “pipeline” from exploration to marketing.
On behalf of the Board STORNOWAY DIAMOND CORPORATION
Eira Thomas, Chief Executive Officer
Contacts: Stornoway Diamond Corporation Nick Thomas (604) 331-2271 or 1-877-331-2232 (604) 668-8366 (FAX) Email: email@example.com
Source: Stornoway Diamond Corporation