Stornoway Diamonds entered into a new agreement with the Quebec government that puts the responsibility for the Route 167 extension under Stornoway’s direct management.
This new agreement replaces two previous ones between Quebec and Stornoway.
The Route 167 extension is necessary for the construction of Stornoway’s Renard Diamond Project. The road will eventually allow Stornoway to transport crews and equipment, which will begin mine construction.
Work on this 240-kilometre extension began in February and is planned in four segments. As stated in earlier agreements, the first two segments comprised of 143 kilometres will be completed by Quebec.
Under the terms of the new agreement the process of building is expedited by giving Stornoway the responsibility for the construction of the third and fourth segments. Stornoway plans to begin construction in April 2013.
Quebec’s ministry of transport has agreed to complete a winter road by March 2013 expediting Stornoway’s construction plans.
The cost of Stornoway’s half of the road is estimated to be $77 million including construction and road maintenance. The Quebec government will provide a loan to cover this expense and repayment will begin with the start of mining operations.
Stornoway President and CEO Matt Manson was happy with the terms of the agreement stating, “With Stornoway now responsible for the completion of the project’s access road, we will be in full control of our overall development schedule for the first time.”