Junior mining company Star Diamond, which is involved in a legal wrangle with Rio Tinto Canada over a Saskatchewan project, says it has received a notice from the bigger company calling a meeting to seek approval of a proposed budget for the Star-Orion South project.
According to Star Diamond, Rio Tinto Canada indicates that it has set a budget for June 2021 to March 2022 of C$17.8-million and that it will be seeking to add another C$64.4-million of its expenses from 2019 to May 2021 to that budget.
Star Diamond continues to believe that no joint venture (JV) has been formed with Rio Tinto Canada under the option to JV agreement dated June 2017. That forms the basis of a legal case currently in the Court of Queen’s Bench for Saskatchewan.
The court has not yet released is decision and Star Diamond says it will wait for the court before it responds to Rio Tinto Canada’s notice of a meeting.
Rio Tinto Canada reportedly called for the JV meeting to be held on Monday.