Renard Mine accomplished
Estimated production capacity is of 1.8mn ct p.a.
Stornoway Diamond Corporation announced the attainment of full Completion Certification 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 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. Average annual diamond production at the mine is forecasted at 1.8 million carats per annum over the first 10 years of mining.