Stornoway Announces Closing of Flow-Through Financing
May 29, 2009
Stornoway Diamond Corp. (TSX:SWY) ("Stornoway" or the "Company") is pleased to announce that it has closed a brokered private-placement with Sandfire Securities Inc. as lead agent, and including, Canaccord Capital Corporation and Haywood Securities Inc. (collectively, the "Agents"), consisting of 8,421,276 "flow-through" common shares ("Flow-Through Shares") of Stornoway, for gross proceeds of $1,431,617. The Flow-Through Shares were priced at $0.17 per share and will be subject to a four-month hold period expiring September 30, 2009.
The Agents received a cash commission and Compensation Warrants, both equal to 7% of the gross proceeds raised by the Agents. The 568,695 Compensation Warrants will be exercisable at $0.17 and will expire May 29, 2011.
Insiders of the Company subscribed for 297,059 Flow-Through Shares of the Company on the same terms as the arm's length subscribers.
The proceeds from the private placement will be used primarily to fund Stornoway's share of exploration on the Renard Diamond Project in
The private placement remains subject to the receipt of final 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
Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Matt Manson"
President and Chief Executive Officer
For more information, please contact Matt Manson (President and CEO) at 416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754 or toll free at 1-877-331-2232
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