Stornoway Diamonds (Canada) Inc announces that it is temporarily suspending operations at its Renard mine located in Nord-du-Québec, in the Cree territory of Eeyou Istchee, effective immediately.
The growing uncertainty of the diamond price in the short and medium term, coupled with the significant and sudden drop in the price of the resource on the world market, have had a major impact on the Company’s long-term financial situation. This was in part due to the halt in the import of rough diamonds to India and by the global geopolitical climate.
Stornoway is placing the Renard mine in a Care and Maintenance, phase to preserve the assets and facilitate a rapid return to normal operations. About 75 employees will be assigned to these tasks.
Stornoway has also begun the process of placing itself under the protection of the Companies’ Creditors Arrangement Act to enable it to restructure its business and turn around its financial situation. The appointment of Deloitte Restructuring Inc. is also being sought from the Court to act as Monitor and supervise the restructuring process.
The Company is implementing a process for soliciting investment and sale proposals under the Companies’ Creditors Arrangement Act.
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