Stornoway Diamond Corporation
Wednesday, July 25th, 2007
Stornoway Diamond Corporation is pleased to announce the completion of the sale of its 45% interest in the Buffalo Hills Project, located in north-central Alberta to Diamondex Resources Ltd. and Shore Gold Inc. for a total consideration of $17.5 million. Under the agreement Shore paid $8.75 million in cash and Diamondex paid $6.25 million in cash and issued 6,031,363 of its common shares with a deemed value of $2.5 million to Ashton Diamonds (Canada) Inc., a wholly owned subsidiary of Stornoway Diamond Corporation.
The monetization of this non-core asset allows Stornoway to focus its efforts on key exploration and development opportunities within its extensive property holdings, in particular the development track Renard Project in north-central Quebec, which has the potential to become Quebecâ€™s first diamond mine.