Blackstone Tactical Opportunities, an affiliate of Blackstone, one of the world's leading investment firms, has acquired a meaningful equity position in Stornoway and a minority ownership interest in the Renard diamond stream, the Canadian diamond exploration and development company said in a statement. It added that this was by way of a secondary market transaction with Orion Mine Finance.

Last July, when construction work at the Renard mine commenced, FCDC Sales and Marketing Inc., a wholly owned subsidiary of Stornoway, agreed to sell a 20% undivided interest in diamonds produced from the Renard Diamond Project for an up-front payment of US$250 million.

Following the Blackstone-Orion transaction, Orion, which had earlier acquired a stake, remains the majority owner of the Renard stream interest and continues to be the second largest shareholder with an approximate 20% stake.

The Renard Diamond Project is expected to produce an average of 1.6 million carats per year over an initial 11-year mine life. Plant commissioning is scheduled to begin in late 2016 and commercial production in the second quarter of 2017.

Matt Manson, President and CEO, commented "We are very happy to welcome Blackstone as a shareholder and streaming partner in the ongoing development of the Renard Diamond Project. Blackstone's transaction with Orion is additional validation of the good progress being made by the Stornoway team and in the long term fundamentals of the diamond mining sector. "

"Blackstone is excited to partner with Stornoway and Orion in the development of this high-quality diamond asset with significant resource potential," said Jasvinder Khaira, Managing Director of Blackstone Tactical Opportunities.

Oskar Lewnowski, Chief Investment Officer of the Orion Mine Finance Group, commented "As one of the largest investors dedicated to the mining industry since 2004, we are delighted to introduce Blackstone to the Renard project. We continue to have a great amount of confidence in Stornoway's management team and maintain our support for the Renard Project as a leading shareholder and the majority stream buyer."