Just read this from Will P"s stockhouse
Matt Manson's Stornoway Diamond Corp. (SWY), up five cents to $1.02 on 2.44 million shares, has financing for a big diamond mine at Renard, in Northern Quebec. The arrangement with three Quebec companies will provide nearly $1-billion in equity and debt financing. One, Ressources Quebec (RQ), is a subsidiary of the Quebec government. Some Quebec bureaucrats jumped the gun late last month, telling the Canadian Broadcasting Corp. a deal was done. Mr. Manson corrected the report but his well-crafted response pushed Stornoway's stock to a high of $1.20; the market seems less enthused with the real deal than the rumour of one. Mr. Manson will get his cash from a $275-million forward sale of Renard diamonds to Orion Co-Investments Ltd. and Caisse de depot et placement du Quebec (CDPQ); $203-million in debt financing and credit facilities from CDPQ and RQ; $243-million in equity sales to the three institutional investors, and a $184-million public offering. Investors had probably been hoping Mr. Manson would turn those numbers around: last year he had been trying for up to $475-million in debt financing, which would have cut new equity back to the $250-million range. No matter: Stornoway will now have the cash to build its mine. Renard has a feasibility study suggesting it will be profitable, but the document is based on just a fraction of the diamonds believed present in several key pipes. Mr. Manson intends to upgrade a portion of the additional diamonds through more drilling this year and eventually, Renard could produce up to 90 million carats if all of the diamonds in Stornoway's "targets for further exploration" can be turned into proven carats.