Canadian miner Osisko Gold Royalties has announced it will re-launch the Stornoway Renard diamond mine in Quebec this month, with plans to invest significant funds over the next 16 months in the facility.
“The detailed plan approved by the Board of Directors of Stornoway and its shareholders includes cost reductions of over $30M over the next 16 months of operations, with a projected impact of significantly reducing the all-in cost of production,” the company said in a statement. “Further to this cost reduction plan, the current shareholders of Stornoway have committed to reinvest up to $30M (up to $7.5M for Osisko) in a senior secured working capital facility. This additional commitment will provide the required financial flexibility for Stornoway to continue operating in a challenging diamond market.”
Stornoway currently has about 332,000 unsold carats in inventory which it expects to sell later in 2020, according to Osisko.