Star Diamond Corporation would like to bring its shareholders up to date on a number of Management initiatives. In a Pre-Feasibility Study Financing, following the completion of our revised mineral resource update -Revised Mineral Resources Estimate Exhibits Significant Increase Total Indicated: 72 Million Carats.
Total Inferred: 15 Million Carats, July 24, 2024, Star Diamond has been looking for $3-5 million in project financing in order to undertake a Pre-Feasibility Study on our Star – Orion South Diamond Project. Said in the Star Diamond Corporation 2024 Year-End Update
The Company reached out to over 20 royalty or streaming companies globally and responses fell under two main categories,
1: Diamonds are not within our current mandate,
2: We do not have the resources to look at this project at the present time.
Star Diamond had discussions with over 70 institutions engaged in providing pre-build resource financing and received several market proposals. These proposals required the provision of senior ranking security over our assets in order to advance funding.
However, security over all the Company’s assets is held by our previous joint venture partner as collateral for their provision of the reclamation bond to the Province of Saskatchewan on our behalf. The secured party was not willing to provide a security carve-out to allow the Company to avail ourselves of these proposals.
Ewan Mason, President & CEO of the Company said, “While 2024 was a great year for us in getting back our former joint-venture partner’s 75% share of the project, along with a myriad of other assets, and increasing the Project resource by nearly 30%, the diamond industry as a whole has not fared so well. There does however appear to be the beginning of a turn-around in the larger stone end of the market and that should bode well for us going forward”
Mason also noted, “the Company is grateful for the work done by Johnson over the past two years as Star Diamond navigated through unchartered waters and thanks him for his service on behalf of the Board and all shareholders”.
Star has entered into discussions with a heavy equipment auctioneer to sell the Bauer Trench Cutter; they believe the sale could realize some $4-6 million in gross proceeds, of which 50% is payable to Rio Tinto under the terms of the Exit Agreement; and Management has also been in discussions with a number of critical minerals companies about the sale of the bulk sample plant and the TOMRA x-ray sorter.
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