GREY:SWYDF - Post by User
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dalesio_98on Sep 10, 2019 10:50am
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Post says Osisko Gold buying Stornoway
Post says Osisko Gold buying Stornoway https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aSWY-2808049&symbol=SWY®ion=C Post says Osisko Gold buying Stornoway Diamond 2019-09-10 09:07 ET - In the News See In the News (C-OR) Osisko Gold Royalties Ltd The Financial Post reports in its Tuesday edition that Osisko Gold Royalties is buying Stornoway Diamond in partnership with its creditors as the Quebec-based gem miner files for bankruptcy protection. The Post's Colin McClelland writes that the agreement stemming from a June letter of intent will see Osisko and other creditors assume all debts and liabilities of Stornoway while continuing to operate its Renard diamond mine in Quebec by supplying $20-million in working capital. "The continued downward pressure on the market price for rough diamonds, as well as a variety of other factors and circumstances, have contributed to the corporation's inability to generate positive free cash flow in 2019, and to maintain an adequate level of working capital," the company said in a filing to Superior Court. "It's in the best interests" of the company "as well as those of their respective stakeholders to seek protection" after no other third party bids for the miner emerged since June, it added. Osisko is to reinvest its 9.6-per-cent revenue stream from Renard back into the mine for at least a year. The Renard mine in the James Bay region was built with $946-million in financing and began commercial production in 2017.