Stornoway Announces Investment by Blackstone
30 Avril 2015 - 2:00PM
Business Wire
Stornoway Diamond Corporation (TSX:SWY) announced today that
Blackstone Tactical Opportunities, an affiliate of Blackstone
(NYSE:BX), has acquired a meaningful equity position in Stornoway
and a minority ownership interest in the Renard diamond stream by
way of a secondary market transaction with Orion Mine Finance
(“Orion”).
The Renard diamond stream was concluded in July 2014 by FCDC
Sales and Marketing Inc. (“FCDC”), a wholly owned subsidiary of
Stornoway, by which FCDC agreed to sell a 20% undivided interest in
diamonds produced from the Renard Diamond Project for an up-front
payment of US$250 million. Following the Blackstone-Orion
transaction, Orion remains the majority owner of the Renard stream
interest and continues to be the second largest shareholder with an
approximately 20% stake in Stornoway’s issued and outstanding
common shares.
Matt Manson, President and CEO, commented “We are very happy to
welcome Blackstone as a shareholder and streaming partner in the
ongoing development of the Renard Diamond Project. Blackstone’s
transaction with Orion is additional validation of the good
progress being made by the Stornoway team and in the long term
fundamentals of the diamond mining sector. Blackstone’s global
presence and their long-established status as one of the world’s
leading investment firms make them ideally suited to Stornoway as
we work to build a world class diamond mining company.”
“Blackstone is excited to partner with Stornoway and Orion in
the development of this high-quality diamond asset with significant
resource potential,” said Jasvinder Khaira, Managing Director of
Blackstone Tactical Opportunities. “The Stornoway team are talented
operators, uniquely situated to bring the Renard mine to production
on time and on budget. Our partnership with Stornoway is consistent
with our strategy of backing best-in-class managers and exceptional
assets in the mining industry.”
Oskar Lewnowski, Chief Investment Officer of the Orion Mine
Finance Group, commented “As one of the largest investors dedicated
to the mining industry since 2004, we are delighted to introduce
Blackstone to the Renard project. We continue to have a great
amount of confidence in Stornoway’s management team and maintain
our support for the Renard Project as a leading shareholder and the
majority stream buyer.”
The Renard Diamond Project is fully financed and permitted for
development of an open pit and underground diamond mine that is
expected to produce an average of 1.6 million carats per year over
an initial 11-year mine life, representing approximately 2% of
global diamond supply by value. The project remains on schedule for
plant commissioning beginning in late 2016 and commercial
production in the second quarter of 2017.
About the Renard Diamond Project
The Renard Diamond Project 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. On July 8th 2014
Stornoway announced the completion of a $946 million project
financing transaction to fully fund the project to production, and
construction commenced on July 10th, 2014. First ore is scheduled
to be delivered to the plant in the second half of 2016 with
commercial production scheduled for the 2nd quarter of 2017.
In January 2013, Stornoway released the results of an Optimized
Feasibility Study at Renard which highlighted the potential of the
project to become a significant producer of high value rough
diamonds over a long mine life. Probable Mineral Reserves, as
defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”), stand at 17.9 million carats. Total
Indicated Mineral Resources, inclusive of the Mineral Reserve,
stand at 27.1 million carats, with a further 16.85 million carats
classified as Inferred Mineral Resources, and 25.7 to 47.8 million
carats classified as non-resource exploration upside. Average
annual diamond production is forecast at 1.6mcarats/year over the
first 11 years of mining, at an average valuation of US$190/carat
based on a March 2014 assessment by WWW International Diamond
Consultants Ltd.
Readers are cautioned that the potential quality and grade of
any target for further exploration is conceptual in nature, there
has been insufficient exploration to define a Mineral Resource and
it is uncertain if further exploration will result in the target
being delineated as a Mineral Resource. All kimberlites remain open
at depth. Readers are referred to the technical report dated
February 28th, 2013 in respect of the January 2013 Optimization
Study, and the press release dated July 23, 2013 in respect of the
July 2013 Mineral Resource estimate, for further details and
assumptions relating to the project. Disclosure of a scientific or
technical nature in this press release was prepared under the
supervision of Patrick Godin, P.Eng. (Québec), Chief Operating
Officer and Robin Hopkins, P.Geol. (NT/NU), Vice President,
Exploration, both “qualified persons” under NI 43-101.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and
development company listed on the Toronto Stock Exchange under the
symbol SWY and headquartered in Montreal. Our flagship asset is the
100% owned Renard Diamond Project, on track to becoming Québec’s
first diamond mine. Stornoway is a growth oriented company with a
world class asset, in one of the world’s best mining jurisdictions,
in one of the world’s great mining businesses.
About Blackstone
Blackstone is one of the world’s leading investment firms. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our asset management
businesses, with over $300 billion in assets under management,
include investment vehicles focused on private equity, real estate,
public debt and equity, non-investment grade credit, real assets
and secondary funds, all on a global basis. Blackstone also
provides various financial advisory services, including financial
and strategic advisory, restructuring and reorganization advisory
and fund placement services. Further information is available at
www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
About Orion
The Orion Mine Finance Group is one of the world’s leading
mining-focused investment businesses with approximately $1.8
billion under management specializing in providing flexible capital
investment solutions to mining companies in the base and precious
metals sector. Orion has demonstrated capability in debt, equity,
convertibles, streaming, and royalty investments. In addition, the
Orion Mine Finance team has experience in the physical metals
markets, such as facilitating the purchase, metal financing,
transporting, processing and selling of a mine’s output to end
customers.
BlackstonePeter Rose,
212-583-5871peter.rose@blackstone.comorStronoway Diamond
CorporationOrin Baranowsky, 416-304-102 Ext.
3obaranowsky@stornowaydiamonds.comorOrion Mine FinanceIstvan
Zollei, 212-596-3473izollei@orionresourcepartners.com