Rio Tinto Pulls Out of Star Diamond Project
December 04, 23
(IDEX Online) - Star Diamond says it will acquire full ownership of the Fort a la Corne project being developed in Saskatchewan, Canada, after Rio Tinto agreed to transfer its 75 per cent interest.
Rio Tinto says it is pulling out because its global exploration program is now firmly focused on metals and minerals to support the energy transition.
The two companies have previously been tangled in legal rows over alleged overspending on exploration costs and damage to diamonds.
Under the agreement, Rio Tinto's stake in the project will increase from 2.3 per cent to 19.9 per cent and will have the right to increase it if the Canadian junior miner Star Diamond receives an acquisition proposal.
"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, Star's president and CEO.
Dave Andrews, Rio Tinto head of exploration, said: "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 per cent 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 a la Corne property and the broader Saskatchewan economy."
Pic shows the Fort a la Corne project.