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Stornoway (SWY.TO) Announces Closing of $10 Million Flow-Through

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RobertJames   Tuesday, 12/03/13 10:50:29 AM
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Stornoway (SWY.TO) Announces Closing of $10 Million Flow-Through Financing for Renard Resource Expansion Drill Program




MONTREAL, QUEBEC--(Marketwired - Dec. 3, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the closing of its previously announced bought deal private placement financing of flow-through common shares ("Flow-Through Shares"), for aggregate gross proceeds of $10,051,000 (the "Offering").

Dundee Securities Ltd., on behalf of a syndicate of underwriters, including Scotia Captial Inc. and Desjardins Securities Inc. (collectively, the "Underwriters"), sold 10,580,000 Flow-Through Shares, including 1,380,000 Flow-Through Shares issued pursuant to the exercise in full of the over-allotment option by the Underwriters at an issue price of $0.95 per Flow-Through Share. The Flow-Through Shares issued pursuant to the Offering will be subject to a four-month hold period expiring April 4, 2014.

In connection with the Offering, the Underwriters received a cash fee equal to 5% of the gross proceeds of the Offering and 529,000 compensation warrants equal to 5% of the number of Flow-Through Shares sold pursuant to the Offering, each compensation warrant exercisable to purchase one common share of Stornoway at a price per share of $0.95 for a period of 24 months following closing.

Stornoway has agreed that expenditures incurred with proceeds from the Offering will constitute Canadian exploration expenses (as defined in the Income Tax Act), will be incurred prior to December 31, 2014 and will be renounced to the subscribers.

The Flow-Through Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or a solicitation to buy such securities in the United States.


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