By Adriano Marchese

 

Star Diamond Corp. shares fell precipitously on Wednesday after the company said its joint venture partner Rio Tinto Exploration Canada Inc. is considering a potential exit from their project in the province Saskatchewan.

At 9:55 a.m. ET, shares were trading 61% lower at C$0.11.

On Tuesday after markets closed, the company said that Rio Tinto exercised its voting power to close the Star-Orion South Diamond project mine site for the rest of the year, and that it wouldn't commit additional capital to the project in that time.

Star Diamond holds a 25% interest in certain Fort a la Corne mineral dispositions which includes the Star-Orion South Diamond project, while Rio Tinto Exploration Canada, a subsidiary of Rio Tinto PLC, owns the rest.

Star Diamond said that during their joint committee meeting, Rio Tinto said it intends to review its alternatives regarding the project, including a potential exit.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

June 29, 2022 10:19 ET (14:19 GMT)

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