Osisko Gold Royalties Ltd (TSX:OR), Diaquem, Inc. and other secured creditors completed the acquisition of all assets of Stornoway Diamond Corporation.

Osisko Gold Royalties Ltd (TSX:OR), Diaquem, Inc. and other secured creditors entered into a letter of intent to acquire all assets of Stornoway Diamond Corporation (TSX:SWY) on September 9, 2019. Under the terms of the transaction, Osisko Gold Royalties Ltd, Diaquem, Inc. and other secured creditors under the bridge financing agreement entered into with Stornoway Diamond Corporation on June 10, 2019, will acquire by way of a credit bid transaction all or substantially all of the assets and properties of Stornoway Diamond Corporation, and assume the debts and liabilities owing to the secured creditors as well as the ongoing obligations relating to the operation of the Renard mine, subject to certain limited exceptions. Pursuant to the credit bid transaction, Osisko Gold Royalties Ltd will maintain its 9.6% diamond stream on the Renard mine and will continue to receive stream deliveries, and has agreed to reinvest its proceeds from the stream for a period of 1 year from the date of closing of the credit bid transaction. The common shares and convertible debentures of Stornoway Diamond Corporation will soon be delisted from trading on the Toronto Stock Exchange and will be worthless. In connection with the transaction, Stornoway Diamond Corporation has applied to the Superior Court of Quebec (Commercial Division) for protection under Creditors Arrangement Act in order to restructure its business and financial affairs. As of October 7, 2019 the Superior Court of Quebec released the Approval and Vesting Order under the Companies' Creditors Arrangement Act. The deal is subject to certain conditions contemplated in the Purchase Agreement. The transaction is expected to occur on or about November 1, 2019. Deloitte Restructuring Inc. acted as advisor for Stornoway Diamond Corporation to oversee the process under the Companies' Creditors Arrangement Act. Scotia Capital Inc. acted as a financial advisor to Stornoway Diamond Corporation.

Osisko Gold Royalties Ltd (TSX:OR), Diaquem, Inc. and other secured creditors completed the acquisition of all assets of Stornoway Diamond Corporation (TSX:SWY) on November 1, 2019.