https://www.miningweekly.com
Aggregate|Energy|Exploration|PROJECT|Projects|Environmental
Aggregate|Energy|Exploration|PROJECT|Projects|Environmental
aggregate|energy|exploration|project|projects|environmental

Rio Tinto sells stake in Canada diamond project

29th November 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Diversified miner Rio Tinto is selling its 75% interest in the Fort à la Corne diamond project, in central Saskatchewan, to joint venture (JV) partner Star Diamond Corp, for shares in the Canadian junior.

Star Diamond will issue Rio Tinto Exploration Canada (RTEC) shares that will result in the company owning a 19.9% stake in the exploration and development company.

Rio Tinto head of exploration Dave Andrews said that the majority of the group’s exploration programme was 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."

RTEC will transfer to Star Diamond ownership of the trench cutter drill rig, used by RTEC to complete its prior bulk sampling programme at Fort à la Corne, and the bulk sample plant, including the Tomra XRT diamond sorting machine that is on site.

"Acquiring 100% ownership of the project will be a major accomplishment for Star Diamond and its shareholders,” commented Star Diamond president and CEO Ewan Mason.

“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," he said.

Upon completion of the transactions that are the subject of the agreement, Star Diamond will have full control and responsibility for the project, the existing JV agreement between RTEC and Star Diamond will terminate, and Star Diamond will release and indemnify RTEC for liabilities arising from or relating to the project, all in exchange for a $4-million payment from RTEC to Star Diamond. 

RTEC has agreed that it will provide on Star Diamond's behalf, for up to five years following closing, letters of credit in the aggregate amount of no more than C$9.9-million to secure certain environmental remediation and reclamation obligations related to the project. Star Diamond will be obliged to repay any amounts drawn on these letters of credit and such repayment obligations will be secured against the project and its assets.   

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine video image
Magazine round up | 01 March 2024
1st March 2024
Implats CEO Nico Muller
Implats expecting phased reduction in group output
29th February 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.136 0.176s - 90pq - 2rq
Subscribe Now