/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Feb. 3 /CNW/ - Stornoway Diamond Corporation (TSX:SWY) ("Stornoway" or the "Company") is pleased to announce that, in connection with its previously announced overnight marketed public offering (the "Offering") it has entered into an agreement with a syndicate of underwriters led by Canaccord Financial Ltd. and including Cormark Securities Inc., Haywood Securities Inc., Desjardin Securities Inc., BMO Capital Markets, Paradigm Capital Inc. and Raymond James Ltd. (the "Underwriters") to sell 20,000,000 common shares (the "Common Shares") at a price of $0.50 per Common Share for gross proceeds of $10,000,000 (the "Offering"). The Common Shares are being offered pursuant to a short form prospectus in each of the provinces of Canada and by private placement in the U.S. to qualified institutional buyers and institutional accredited investors. The Company has granted the Underwriters an over-allotment option to purchase up to that number of additional Common Shares equal to 15% of the Common Shares sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering.
The Company intends to use the net proceeds of the Offering to complete a bankable feasibility study and conduct exploration activities on the Renard Diamond Project, and for general working capital purposes.
Closing of the Offering is anticipated to occur on or before February 23, 2010 and is subject to receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.
The securities 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 news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
About Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in seven Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Matt Manson"
President and Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various certain risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals, risks inherent in the mineral exploration and production industry, and other risks detailed herein and in the preliminary prospectus and from time to time in the filings made by the Company with securities regulators, most of which filings are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
SOURCE Stornoway Diamond Corporation
For further information: For further information: Nick Thomas at (604) 983-7754 or 1-877-331-2232, Website: www.stornowaydiamonds.com, Email: email@example.com