Star Diamond Corporation announced on 28 January 2024 that it has entered into a binding agreement with Rio Tinto Exploration Canada (RTEC) for the transfer of RTEC’s 75% interest in the Fort à la Corne diamond project located in central Saskatchewan.
“Acquiring 100% ownership of the Project will be a major accomplishment for Star Diamond and its shareholders. We are grateful to Rio Tinto for the significant monetary investment and expertise it has contributed to the Project over the past more than five years, which has meaningfully advanced what Star Diamond believes is one of the most promising diamond projects in the world,” said Ewan Mason, President and Chief Executive Officer of Star Diamond.
Rio Tinto Head of Exploration, Dave Andrews said, “The majority of Rio Tinto’s global exploration program is now firmly focused on metals and minerals to support the energy transition. Although we will no longer have direct involvement in the Project, we are pleased to be able to maintain our interest in the Project by gaining a 19.9% ownership interest in Star Diamond. After more than five years, we continue to see potential in the Project and believe it can be a significant contributor to both the local communities around the Fort à la Corne property and the broader Saskatchewan economy.”
Upon completion of the transactions that are the subject of the Agreement, Star Diamond will have full control and responsibility for the Project, the existing joint venture agreement between RTEC and Star Diamond will terminate, and Star Diamond will release and indemnify RTEC for liabilities arising from or relating to the Project, all in exchange for a Cdn. $4 million payment from RTEC to Star Diamond.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
