The press release is quoted as saying:

Pursuant to the Option, the Underwriters have acquired an additional 2,370,000 common shares for gross proceeds to the Company of $1,185,000, bringing the aggregate gross proceeds of the equity financing to $12,685,000. The Company intends to use the net proceeds of the Offering to complete a bankable feasibility study and conduct exploration activities on the Renard Diamond Project, and for general working capital purposes.

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Click here to access Stornoway Diamond Corporate Site

The press release is quoted as saying:

Stornoway Diamond Corporation is one of Canada’s leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond “pipeline” from exploration to marketing.

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Click here to access Stornoway Diamond Corporate Site

By Michael Montgomery—Exclusive to Diamond Investing News

The global economic downturn hit almost all industries with a mighty blow, but none more so than the diamond industry. Signs that the global economy is making a recovery bode well for the diamond market both in the rough and polished sectors.

“After sluggishness during most of 2008 and early 2009, the global economy has begun to show signs of a recovery,” says IDEX researcher Ken Gassman. “In particular, the U.S. economy posted a dramatic 5.9 percent growth in the fourth quarter of 2009, after generating a solid 2.2 per cent gain in the third quarter of that year. Historically, jewelry demand and GDP move together.”

This historical trend between GDP and luxury purchases is also evident in China’s growing appetite for diamonds.

China is now the world’s second largest economy. This massive increase in wealth has created a massive desire for luxury goods. In correlation with their place in the global economy, China has also become the second-largest consumer of diamonds worldwide.

The reduced dependence on the US as the largest consumer of diamonds will stabilize the market. It’s a “much healthier picture if you are not that dependent on one country,” said Petra Diamonds Ltd. CEO John Dippenaar.

Holding strong against the economic storm, China’s GDP reached 4.9 trillion dollars, an increase of 8.7 percent in 2009. This growth in GPD is tempered by the fact that because of China’s huge population its per capita GDP is still far behind the west. As the increase in wealth sees its way to a larger population base, spending on consumer goods will increase.

As the population of China becomes increasingly wealthy so goes the population’s desire for diamonds. The growth of the Chinese diamond market will surely follow the growth of China’s per capita GDP. China’s trade in polished diamond imports and exports rose 16.4 percent to $1.52 billion in 2009.

According to Rapaport reporter Julius Zheng, the Diamond Administration of China “attributed the increased imports to China’s economic growth and the expansion of its domestic jewelry market, particularly in bridal goods.”

The question for investors is: which companies stand to benefit in the growth of the Chinese market?

Mining Ventures in India

New developments from the Asian sub-continent point toward India becoming an emerging supplier for the Chinese diamond industry. India is interested in increasing their presence in the global diamond market and has been looking for mining companies to invest in its mineral wealth. Presently, only 10 percent of the country has been explored.

According to IDEX reporter Edon Ophir, an “unnamed senior official at the federal mines ministry told newspaper that Rio Tinto – through its Rio Tinto Exploration India unit – plans to invest 22 billion rupees (US$532 million) in the Bunder diamond mining project in the central state of Madhya Pradesh.” This project is not yet online and has a soft production date to begin in 2016.

Relations between the two nations have been strained since twenty-one Indian diamond traders were arrested in China on charges of illegally importing diamonds into India. Some reports have said that India would pull out of the Chinese markets.

However, “Hong Kong is the biggest export market for India’s polished diamonds. Despite the recent arrests, there will be no impact on exports from India,” said Rohit Mehta, Surat Diamond Association President. “China and India together have weathered the global economic slowdown with an increased demand in polished diamonds.”

As the global economy recovers and the middle class widens in developing nations, the outlook for the diamond sector is likely to be promising.The rough diamond market has already starting to rebound and prices are close to levels seen before the global financial meltdown which forced demand for diamonds and jewelry to dwindle dramatically down. In fact, some analysts and diamond experts suggest that valuations of diamond stocks appear to be relatively cheap.

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The press release is quoted as saying:

Dianor will use the funding from the equity line of credit to advance the bulk sampling of the Leadbetter Diamond Project, Dianor’s flagship project located near Wawa, Ontario. In May 2009, Dianor announced that its Northern and Central Decline Advanced Exploration/Rehabilitation/Closure plans for a 50,000-tonne bulk sampling programme on the Leadbetter Diamond Project had been approved by, and filed with, the Ontario Ministry of Northern Development, Mines and Forestry (press release May 13th 2009). Under this bulk sampling programme, Dianor expects to recover diamonds, rubies, sapphires and gold.

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The press release is quoted as saying:

Stornoway Diamond Corporation is one of Canada’s leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in six Canadian diamond districts.

Click here to access the entire press release

Click here to access Stornoway Diamond Corporate Site

One of my themes is that the value investing mindset, the ability to buy at the largest discount between present price and future intrinsic value, can be found and studied inside of businesses too, not just in people who buy stocks for a living.

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The press release is quoted as saying:

The Notice of Intent describes a combined open pit and underground mining operation at Renard, with a production rate of between 5,000 and 7,000 tonnes per day (1.8 to 2.5 million tonnes per year) and a potential mine life of 25 years, based on the totality of mineral resources identified to date.

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Click here to access Stornoway Diamonds Corporate Site

The press release is quoted as saying:

Dianor is an innovative exploration company focused on advancing diamond exploration properties in the Superior Craton of Canada. The Leadbetter Diamond Project is its most advanced project and is geographically well situated and easily accessible, some 12 kilometres north east of Wawa in Northern Ontario.

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The press release is quoted as saying:

Arctic Star will present the Credit Lake diamond exploration program at a Prospectors & Developers Association of Canada (PDAC) Exchange Forum Presentation on Tuesday, March 9, 2010, at 2:20PM in Room 803 AB Diamonds in the South Building of the Metro Toronto Convention Centre.

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Click here to access Arctic Star Diamond Corporate Site