Osisko acquires troubled Stornoway
Osisko Gold Royalties announced today that it is acquiring Stornoway Diamond, the Quebec miner that found itself in trouble after the diamond market turned sour.
According to a news release, Osisko will acquire "...substantially all of the assets and properties of Stornoway, and assume the debts and liabilities owing to the Secured Creditors as well as the ongoing obligations relating to the operation of the Renard mine."
Stornoway applied to creditor protection so it can restructure. The diamond miner intends to operate during the restructure.
Osisko and secured creditors have provided Stornoway with working capital of $20 million to ensure liquidity.
Osisko said it will maintain its 9.6% diamond stream on the Renard mine and will continue to receive stream deliveries, and has agreed to reinvest its proceeds from the stream.