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Message: Announces Flow-Through Financing
| April 24, 2009 |
| Stornoway Announces Flow-Through Financing |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2009) - Stornoway Diamond Corp. (TSX:SWY) ("Stornoway" or the "Company") is pleased to announce that it has appointed Sandfire Securities Inc. to act as its agent (the "Agent") in connection with a brokered private placement for up to 9,090,909 "flow-through" common shares ("Flow-Through Shares") of Stornoway, for gross proceeds of up to $2,000,000. The Company has granted the Agent an over allotment option to solicit subscriptions for additional Flow-Through Shares for up to a further $500,000 prior to closing. The Flow-Through Shares will be priced at $0.22 per share and will be subject to a four-month hold period. The Agent will receive a cash commission and Compensation Options, both equal to 8% of the gross proceeds raised by the Agent. The Compensation Options will be exercisable at $0.22 and will expire two years following closing. The proceeds from the private placement will be used primarily to fund Stornoway's share of exploration on the Renard Diamond Project in Quebec. Expenditures from the Flow-Through Shares will constitute Canadian exploration expense ("CEE") (as defined in the Income Tax Act) and will be renounced to the subscribers. A minimum of $600,000 will also qualify for a Quebec surface drilling tax credit, which will also be renounced to the subscribers. The private placement remains subject to the receipt of all required regulatory approvals. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and may never be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Stornoway Diamond Corporation Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing. On behalf of the Board STORNOWAY DIAMOND CORPORATION Matt Manson, President and Chief Executive Officer |
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