Stornoway Diamond Corporation announced the signing of two financing agreements with the Government of Québec, by which Stornoway will contribute to the construction and maintenance costs of a 243-kilometre extension of Highway 167. The extension will provide year-round highway access to Stornoway's Renard Diamond Project, by way of the com-munities of Mistissini and Chibougamau. The Renard project is expected to be Québec's first diamond mine.
The agreements represent one of the major infrastructure projects included in the Québec government's $1.2 billion “Plan Nord,” an initiative to develop infrastructure in northern Québec. The Québec government committed $331.6 mil-lion to facilitate the construction of the Highway 167 extension.
In two separate agreements executed with the Ministère des Ressources naturelles et de la Faune and the Ministère des Transports, Stornoway agreed to contribute $44 million to the development of the new road, amortized over a 10-year period and starting in July 2015. Stornoway's contribution will be financed by Québec at 6.3 per cent and will be conditional upon, amongst other things, the completion of the road on schedule, the receipt of all regulatory approvals for the construction of the Renard Diamond Project and the successful completion of Renard project financing. In addition, Stornoway has agreed to contribute a maximum of $5,000 per kilometre, or $1.215 million per year, to the maintenance of the road during operation.
Stornoway was represented by Lavery, de Billy L.L.P., with an energy and natural resource team led by Sébastien Vézina and including Jean-Sébastien Desroches and Loïc Berdnikov.