Star Diamond Corporation reports that the unaudited financial results for the quarter ended June 30, 2023, will be filed on SEDAR+.
Star Diamond Corporation is a Canadian natural resource company focused on exploring and developing Saskatchewan’s diamond resources. Star Diamond currently holds, through a joint venture arrangement with Rio Tinto Exploration Canada Inc, a wholly-owned subsidiary of Rio Tinto plc, a 25% interest in certain mineral properties within the Fort à la Corne diamond district of central Saskatchewan, Canada. These properties are in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.
The Company also holds a 50% interest in the exploration and evaluation properties and assets of the Buffalo Hills-JV located in north-central Alberta, Canada. Canterra Minerals Corporation holds the remaining 50% interest. Canterra is the operator of the Buffalo Hills-JV.
On June 28, 2022, Rio Tinto Canada exercised its voting power at a meeting of the Fort à la Corne joint venture management committee to place the Project on care and maintenance through December 31, 2022. Rio Tinto Canada also advised that, subject to fulfilling its existing obligations, it did not intend to commit additional capital to the Fort à la Corne properties during 2022 beyond what was necessary for care and maintenance.
Rio Tinto Canada also advised Star Diamond that it intended to conduct a near-term review of its alternatives regarding the Fort à la Corne properties, which included its potential exit. On October 21, 2022, Star Diamond announced that Rio Tinto Canada had stated that it intended to fully de-mobilize the leased on-site camp. During the first quarter, the personnel camp was fully de-mobilized and the Project was placed on care and maintenance.
Recent activities relating to the Star – Orion South Diamond Project and Fort à la Corne mineral properties
During the quarter ended June 30, 2023, the Company continued negotiations with Rio Tinto Canada to assess alternatives regarding the Project.
Quarterly Results claimed, for the three months ended June 30, 2023, the Company recorded a net loss of $0.9 million, or $0.00 per share, compared to a net loss of $0.7 million, or $0.00 per share, for the comparative period in 2022. This greater net loss was due to a $0.3 million non-cash loss on the fair value re-measurement of the Company’s investment in Wescan Goldfields Inc. offset by a 20% reduction in expenditures.
Year to Date Results for the six months ended June 30, 2023, the Company recorded a net loss of $1.2 million, or $0.00 per share, compared to a net loss of $1.5 million, or $0.00 per share, for the same period in 2022. This 20% decrease, period over period, was due to lower administrative and exploration and evaluation expenditures incurred, offset by higher consulting and professional fees and corporate development costs.
At June 30, 2023 the Company had $1.0 million (December 31, 2022 – $2.6 million) in cash and cash equivalents and working capital of $0.7 million (December 31, 2022 – $2.0 million). The decrease in working capital was the result of general and administrative, and exploration and evaluation expenditures incurred during the quarter. The Company believes it has sufficient liquidity to fund general and administrative costs and certain exploration expenditures through to the end of 2023.
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