Stornoway Announces Closing of Financings
November 13, 2008
Vancouver, British Columbia - Stornoway Diamond Corp. (TSX:SWY) ("Stornoway" or the "Company") is pleased to announce that it has closed the brokered private placement announced on November 5, 2008 with Canaccord Capital Corporation ("Canaccord" or the "Agent") consisting of 15,806,000 "flow-through" common shares of Stornoway for gross proceeds of $2,370,900. The Agent was paid a 6% commission consisting of cash and 521,077 non-flow-through common shares of the Company.
Concurrently, the Company is pleased to announce the closing of the sale of 9,715,001 "flow-through" common shares for gross proceeds of $1,457,250 under the non-brokered private placement announced on November 5, 2008. Insiders of the Company subscribed for 435,000 "flow-through" common shares of the Company on the same terms as the arms' length subscribers. The company paid a 6% finder's fee on certain of the subscriptions received, paid in the form of $40,710 in cash and 298,242 non-flow-through common shares. Presently, additional subscriptions are anticipated under the non-brokered flow-through private placement.
The Company intends to use the gross proceeds from both the brokered and non-brokered private placement, totaling $3,828,150, to further exploration on the Renard Project in Quebec and certain other Canadian mineral properties. Expenditures from the flow-through common shares will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced effective for the 2008 taxation year. All common shares issued in these private placements, including those as commissions or finder's fees, are subject to a four-month hold period expiring on March 14, 2009.
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
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.