RE:Qc partners with entity in overseas tax haven New shareholder of the Stornoway mining company, Quebec does not take offense to count among its partners a Bermuda investment fund, considered as a tax haven.
Triple Flag Mining Finance Bermuda Ltd., Osisko Gold Royalties, the Caisse de dpt et placement and Investissement Qubec will be the new shareholders of diamond producer Stornoway, which was placed the day before yesterday under the protection of a court.
Quebec thus becomes holder of "about 35%" shares of the company, confirmed yesterday the Minister of the Economy Pierre Fitzgibbon. This share could rise to 48%, as Quebec could offer up to $ 12 million out of the $ 20 to $ 25 million needed to maintain the company's operations in the coming months.
"I am very comfortable with the presence of the Caisse and Osisko" among the new shareholders, said Mr. Fitzgibbon. He did not want to say that about Triple Flag.
"I know them less, to be honest. It's a company that has mining knowledge, and in a situation like this, the more knowledge that we are going to help. "
He also recalled that the company is officially headquartered in Toronto.
Triple Flag Mining Finance Bermuda Ltd. specializes in investments in precious metals and royalties in the mining sector. It is funded in large part by Elliott Management Corporation, an international investment firm with US $ 35 billion in assets under management, controlled by Paul Elliott Singer, often described as a "vulture".
Cost effective in 12 to 18 months?
The return to profitability could be quick, according to Fitzgibbon, who estimates "12 to 18 months" the time needed for the diamond price to rise. A vision that is consistent with that of Osisko's management.
The current cost of production is US $ 70 per carat at Stornoway, and Quebec calculates that a price of $ 85 to $ 90 is possible in the medium term.