Stornoway Diamond Corp. (TSX:SWY) plans to sell its 45% interest in north-central Alberta's Buffalo Hills property to Diamondex Resources Ltd. and Shore Gold Inc. for $17.5 million.
Shore Gold will pay $8.75 million for the property; Diamondex will pay $6.25 million in cash and $2.5 million in Diamondex common shares.
Buffalo Hills is a joint venture with EnCana Corp. and Pure Diamonds Exploration Inc.
The sale is subject to due diligence by Diamondex and Shore Gold and receipt of customary and regulatory approvals.
Stornoway's share price range during the past week: between $0.96 and $1; 52-week high: $1.80; 52-week low: $0.85.