7936567 Canada Inc SWYDF

Metals & Mining Industrial Metals & Minerals

Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.

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7936567 Canada Inc

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Comment by mjl777on Mar 09, 2012 10:57am

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Post# 19649197

RE: management qualities

The big problem is that there is no accountability with Stornoway as there is with other public companies. Their share structure means that they're totally insulated. A self-serving deal like this is an invitation for a takeover offer. But in SWY's case that's not gonna happen in a million years (and Agnico is the only entity with the numbers to pull it off).

The timing of this deal is suspect. There are catalysts in play, why not wait? There should have been an effort to make the deal palatable for minority shareholders who don't have the capability to average down. Of course, the market volatility can always be used as an excuse to finance at any time.

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