Stornoway Diamond Corporation

Stornoway Diamond Corporation

October 03, 2005 16:33 ET

Stornoway Diamond Corporation: New Issue

TORONTO, ONTARIO--(CCNMatthews - Oct. 3, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Stornoway Diamond Corporation ("Stornoway" or the "Company") (TSX:SWY) has today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and Canaccord Capital Corporation and including Haywood Securities Ltd. (the "Underwriters") under which the Underwriters have agreed to buy on a private placement basis 5,000,000 flow-through common shares (the "Flow-Through Shares") from Stornoway at a price of $1.20 per Flow-Through Share. The Company will grant the underwriters an option, exercisable up until 48 hours prior to the closing date of the offering, to purchase up to an additional 2,000,000 Flow-Through Shares at the issue price. Closing is expected on or about October 20, 2005 and is subject to receipt of the approval of the TSX Venture Exchange.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Stornoway Diamond Corporation
    Ms. Eira Thomas
    President and Chief Executive Officer
    604-331-2271 or 1-888-338-2200