Stornoway Announces Flow-Through Financing
November 4, 2008
Stornoway Diamond Corporation (TSX-SWY) is pleased to announce a non-brokered private placement of up to 20,000,000 flow-through common shares at a price of $0.15 per flow through share for gross proceeds of up to $3,000,000. The flow-through common shares will have a four-month hold period.
The proceeds from the private placement will be used primarily to fund Stornoway's share of exploration on the Renard Diamond Project in Quebec. These funds will be used to incur expenditures which qualify as Canadian exploration expenses (as defined in the Income Tax Act).
Stornoway has agreed to pay a 6% finder's fee on certain of the funds to be raised, half of which will be paid in cash and half in shares of Stornoway. Insiders of Stornoway will participate in this financing and will do so on the same terms as the arm's length subscribers.
This offering of flow-through shares is subject to the receipt of all required regulatory approvals.
These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons.
Not for distribution to U.S. news wire services or for dissemination in the United States.
Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies which has established a growing inventory of diamond resources in the ground. The Company recently announced a positive economic study from its Renard diamond project which has the potential to become Quebec's first diamond mine. The Company benefits from a diversified diamond property portfolio 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
/s/ "Eira Thomas"
Chief Executive Officer
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.