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.

GREY:SWYDF - Post by User

7936567 Canada Inc

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Comment by drdiabloon Feb 10, 2010 1:18pm

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Post# 16771606

RE: RE: RE: RE: RE: low volume

There's an old saying in the industry that "you don't finance when you want to and you don't finance when you need to--you finance when you can." The financing will likely place a short-term cap on the SP, but I nevertheless feel that SWY made the right move. Diamonds are a cyclical. It makes sense to do an equity financing while there is demand for the shares. There are, for example, U308 companies right now whose shares have declined to a dime and are facing massive inestor apathy. Either they financed when uranium was hot or they're wishing they had. I'm glad SWY didn't try to finance when its shares were sitting at .055; they would have had to double the market cap to raise $11 million--if they had been able to find buyers.

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Visionstate set to leverage success in the U.S. market