Stornoway Increases Previously Announced Private Placement
November 5, 2008 Vancouver, British Columbia - Stornoway Diamond Corp. (TSX:SWY) ("Stornoway" or the "Company") is pleased to announce that it has increased the size of the private placement it announced on November 4th from $3,000,000 to up to $5,000,000. The private placement will now have a brokered and a non-brokered component.
The Company has entered into an agreement to appoint Canaccord Capital Corporation as its agent (the "Agent"), on a commercially reasonable efforts basis, in connection with the brokered component of the private placement for up to 13,333,300 "flow-through" common shares ("Flow-Through Shares") of Stornoway for gross proceeds of up to $2,000,000. The Company has also granted the Agent an over allotment option to solicit subscriptions for additional Flow-Through Shares for up to a further $1,000,000 exercisable 48 hours prior to closing. The Agent will receive a commission of 6% of the gross proceeds raised by the Agent.
The non-brokered portion of the private placement will be for gross proceeds of up to $2,000,000, a portion of which is subject to a 6% finder's fee.
The price of the Flow-Through Shares under the brokered and non-brokered components remains at $0.15 per share. Both the Agent's commission and the finder's fee are payable as to 50% in cash and 50% in common shares of the Company.
The private placement remains subject to the receipt of all required regulatory approvals.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and may never be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Chief Executive Officer
Not for distribution to United States newswire services or for dissemination in the United States.
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.