TSX: DIAM
SASKATOON, SK, June 28,
2022 /CNW/ - Star Diamond Corporation ("Star
Diamond") announces that, at a meeting of the Fort à la Corne joint
venture management committee held earlier today, Rio Tinto
Exploration Canada Inc. ("Rio Tinto") exercised its voting power to
place the Star – Orion South Diamond Project (the "Project") on
care and maintenance through December
31, 2022. As part of this, Rio Tinto has advised that,
subject to fulfilling its existing obligations, it does not intend
to commit additional capital to the Project during 2022 beyond what
is necessary for care and maintenance.
Rio Tinto also advised Star
Diamond during today's joint venture management committee
meeting that Rio Tinto intends to conduct a near-term review of its
alternatives regarding the Project, including its potential
exit.
During today's meeting, Rio Tinto stated that it remains pleased
with the results of the comprehensive studies and bulk sampling
program that have been completed to date at the Project.
The board of directors of Star
Diamond is disappointed by these decisions.
Star Diamond intends to work with
Rio Tinto in assessing alternatives regarding the Project.
About Star Diamond Corporation
Star Diamond is a Canadian-based corporation
engaged in the acquisition, exploration and development of mineral
properties. Shares of Star Diamond
trade on the Toronto Stock Exchange under the trading symbol
"DIAM". Star Diamond's most
significant asset is its interest in the Fort à la Corne property
in central Saskatchewan. These kimberlites are located in
close proximity to established infrastructure, including paved
highways and the electrical power grid, which provide significant
advantages for future mine development.
Caution Regarding Forward-looking Statements
This press release contains "forward-looking statements" and/or
"forward-looking information" (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking statements in
this press release include, but are not limited to, statements with
respect to Rio Tinto's intentions with respect to funding of the
Fort à la Corne project, Rio Tinto's intention to review its
alternatives with respect to the project and Star Diamond's intention to work with Rio Tinto
in assessing alternatives regarding the project.
These forward-looking statements are based on Star Diamond's current beliefs as well as
assumptions made by and information currently available to
Star Diamond and involve inherent
risks and uncertainties, both general and specific. Risks exist
that forward-looking statements will not be achieved due to a
number of factors including, but not limited to, developments in
world diamond markets, changes in diamond prices, risks relating to
fluctuations in the Canadian dollar and other currencies relative
to the US dollar, changes in exploration, development or mining
plans due to exploration results and changing budget priorities of
Rio Tinto or Star Diamond, the
impact of changes in the laws and regulations regulating mining
exploration, development, closure, judicial or regulatory judgments
and legal proceedings, operational and infrastructure risks and the
additional risks described in Star
Diamond's most recently filed Annual Information Form,
annual and interim MD&A.
SOURCE Star Diamond Corporation