Skip to main content

Report on Business Osisko Gold Royalties and creditors sign deal to acquire Stornoway Diamond

Osisko Gold Royalties Ltd. has signed a deal to acquire Stornoway Diamond Corp. with the help of the mining company’s secured creditors.

Under the terms of the agreement, Osisko and Stornoway secured creditors want to form an entity that will acquire the company and assume the debts and liabilities owing to the secured creditors as well as the obligations relating to the operation of the Renard mine.

Osisko will also keep receiving its 9.6 per cent revenue stream from diamonds at the Renard mine, but has agreed to reinvest its proceeds from the stream for one year from the date of closing of the proposed credit bid transaction.

Story continues below advertisement

In connection with the proposal, Stornoway was granted protection under the Companies’ Creditors Arrangement Act by a Quebec court.

Deloitte Restructuring Inc. was appointed as monitor to oversee the CCAA proceedings and report to the court.

Osisko and a group of the secured creditors have agreed to provide $20 million in working capital secured by Stornoway’s assets.

The money will provide the financing and liquidity required to ensure that the Renard mine continues to operate uninterrupted.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter