TSX: DIAM
SASKATOON, SK, July 15,
2024 /CNW/ - Star Diamond Corporation ("Star
Diamond" or the "Corporation") is pleased to announce that,
pursuant to a definitive agreement dated July 11, 2024, the Corporation has acquired the
interest of Canterra Minerals Corporation ("Canterra")
(TSXV: CTM) in the Buffalo Hills Diamond Project (the
"Project") in north central Alberta
Canada. Upon closing Star
Diamond will hold 100% of the Project.
As consideration for Canterra's 50% interest in the Project, the
Corporation will issue 17,500,000 common shares (the "Consideration
Shares") representing an implied purchase price of $1.1 million. One half of the Consideration
Shares are subject to a 12-month lock-up arrangement. In addition
to the Consideration Shares, Canterra was granted a 1% royalty
interest in the Project. Completion of this acquisition is subject
to certain customary closing conditions, including approval of
the TSX. All of the Consideration Shares are subject to a
customary four month hold period.
Ewan Mason, President and CEO
of Star Diamond Corporation said: "We are excited to gain
control of the 50% of Buffalo Hills Diamond Project we did not own
In early 2023, we dusted off the file on this property and
conducted an examination of the existing diamond parcel that was
collected from a bulk sample previously taken in 2010. Our diamond
specialist thoroughly analyzed the diamonds and we were astonished
to find not only anomalous levels of Type IIa diamonds in the
sample but also a presence of fancy yellow diamonds (K6 yellow
diamonds) with elevated modelled diamond prices. It became clear to
us that further work needed to be done and with a number of pipes
at surface we believe that a larger bulk sample should be taken to
determine how many of the 38 pipes on the property may be economic.
Our plan would be to eventually extract a bulk sample and ship it
to Fort à la Corne and run the sample through our on-site bulk
sample plant."
Chris Pennimpede, President
and CEO of Canterra Minerals Corporation said: "We are
confident that Star Diamond will be
able to maximize the value of the Buffalo Hills Diamond Project as
a dedicated diamond explorer with complementary assets in the
region. Canterra is now focused on advanced stage copper and
gold exploration in the central Newfoundland Mining District and
looks forward to maintaining its exposure to the Project as a
Star Diamond shareholder. We will be
watching developments with much interest as our equity
participation in Star Diamond
provides our company with exposure to future success."
About Buffalo Hills Diamond Project
Located
approximately 400 kilometres northwest of Edmonton, Alberta, Canada, the Buffalo Hills
Diamond Project includes 21 mineral leases covering 4,800
hectares and is a significant and accessible field of diamond
bearing kimberlites, with similarities to the Fort á la Corne
kimberlites in Saskatchewan,
Canada. The Project is located in the Buffalo Hills
Kimberlite District, which contains at least 38 individual
kimberlite bodies, of which 26 kimberlites are diamond bearing and
a number of which outcrop at surface. Exploration on these
kimberlites started in 1996, and small parcels of diamonds have
been collected from various exploration programs on many of those
considered most prospective.
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 100% interest in the Fort à la Corne
Project 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.
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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,
the closing of the acquisition of Canterra's interest in the
Project, the issuance of the Consideration Shares, Star Diamond's exploration of the Project,
Star Diamond's assessment of its
cost and management structure going forward.
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
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 Management Discussion and Analysis. Star Diamond is not affirming or adopting any
statements attributed to Canterra in this release or made by
Canterra outside of this release.
SOURCE Star Diamond Corporation