Star Diamond Corporation has entered into a binding agreement with Rio Tinto Exploration Canada Inc (RTEC), providing for the transfer by RTEC to Star Diamond of all of RTEC’s 75% interest in the Fort à la Corne diamond project located in central Saskatchewan.
RTEC and Star Diamond will enter into an Investor Rights Agreement whereby, among other things, RTEC will be granted certain pre-emptive rights to maintain its 19.9% ownership interest in Star Diamond in connection with future financings undertaken by Star Diamond, and RTEC will agree to certain standstill protections provided that RTEC will have the right to increase its 19.9% ownership position in the event that Star Diamond receives an acquisition proposal.
“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.”
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