Published: September 16, 2020 |

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Osisko Gold Royalties, following a thorough review of operations and the establishment of a detailed restart plan for the Renard Diamond Mine, will be restarting operations in September 2020. The Renard Mine is operated by Stornoway Diamonds Canada Inc.

The detailed plan approved by the board of directors of Stornoway and its shareholders includes cost reductions of over $30 million over the next 16 months of operations, with a projected impact of significantly reducing the all-in cost of production. Further to this cost reduction plan, the current shareholders of Stornoway have committed to reinvest up to $30 million (up to $7.5 million for Osisko) in a senior secured working capital facility. This additional commitment will provide the required financial flexibility for Stornoway to continue operating in a challenging diamond market.

The diamond market continues to be challenging, however, structural impediments to diamond sales are easing and increased demand has improved observed pricing for specific goods.

“The Stornoway team has shown an ability to operate the Renard Mine efficiently and the near-term cost reductions will further help improve profitability. We feel there is significant value in the Renard Mine given the scarcity of diamond mines globally and the approximately $1 billion of well-built infrastructure. We look forward to our partners at Stornoway putting Renard back into production,” said Sean Roosen, chair and chief executive officer of Osisko.

Osisko holds a 9.6 percent diamond stream on the Renard Mine and also became a 35.1 percent shareholder following the creditors’ bid transaction which closed in November 2019. As part of the new commitment, the shareholders and streamers have agreed to continue deferring payments on their respective instruments until April 2022. Payments can be made prior to this date if the financial situation of Stornoway allows it.

About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5 percent net smelter return royalty on the Canadian Malartic Mine, which is the largest gold mine in Canada. Osisko also owns the Cariboo Gold Project in Canada as well as a portfolio of publicly held resource companies, including a 14.7 percent interest in Osisko Mining Inc., 17.9 percent interest in Osisko Metals Incorporated and a 18.3 percent interest in Falco Resources Ltd.

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