Renard Diamond Mine Purchase Back On

A new buyer has picked up the rights to acquire Stornoway Diamonds’ Renard mine, for the purpose of converting it into a lithium-processing plant.

Li-FT, which purchased Winsome Resources last month, will take over the original deal Winsome signed with Stornoway in 2024 before backing out last year due to poor economic conditions in the diamond market.

On June 23, Li-FT, which owns lithium development projects in Canada’s Northwest Territories, as well as in Quebec, signed an exclusive option for Renard diamond mine, its processing facility and all associated infrastructure, it said last week. Renard holds a range of mineral processing and operating permits for mining at various Quebec locations, as well as equipment that can be used for lithium processing.

Acquiring the site, which is close to Li-FT’s Adina Lithium project, will enable the company to repurpose the plant and equipment, the miner explained.

Li-FT will pay an initial CAD 12 million ($8.5 million) and, once the deal is approved, another CAD 18 million ($12.7 million). The funds will remain in trust until the deal is final, subject to court approval. The hearing will take place July 2.

In 2023, Stornoway announced it planned to sell Renard after the weak diamond market forced it into insolvency for the second time in four years. The miner put the deposit on care and maintenance earlier that year, laying off 425 of its 500 employees.

Image: The Renard diamond mine. (Stornoway Diamonds)