Star Diamond update on legal dispute with Rio Tinto Canada
Ticker symbol: DIAM: TSX
Star Diamond Corporation (“Star Diamond”) provided an update today on the ongoing litigation (the “legal proceedings”) between Star Diamond and Rio Tinto Exploration Canada Inc. (“Rio Tinto Canada”) before the Court of Bench of the Queen of Saskatchewan (Saskatoon Judicial Center) (the “Tribunal”).
As previously stated, the June 4, 2021 , the Court held a hearing with respect to the undertaking (the “Undertaking”) previously provided by Rio Tinto Canada to the Court. The court reserved its decision, which is expected in the coming weeks.
Although the Court has not yet rendered its decision regarding the company, the June 17, 2021 , Rio Tinto Canada provided a notice to Star diamond pretending to call, for July 21, 2021 , a meeting of the management committee of the joint venture which, according to Rio Tinto Canada, has already been formed between Star diamond and Rio Tinto Canada. As stated previously, Star diamond believes that no such joint venture has been formed because Rio Tinto Canada November 2019 purported exercise of its options under the joint venture option agreement dated June 22, 2017 Between Star diamond and Rio Tinto Canada has not honored this agreement.
the June 17, 2021 notice from Rio Tinto Canada indicates that Rio Tinto Canada will seek approval of a proposed budget for the period from June 2021 at March 2022 by Cdn. $ 17.8 million . The notice also states that Rio Tinto Canada will seek to add a total of Cdns to this budget. $ 64.4 million allegedly spent by Rio Tinto Canada in 2019, 2020 and the first five months of 2021.
Star diamond does not agree with the positions taken by Rio Tinto Canada in the June 17, 2021 note. However, out of respect for the pending Court decision regarding the Undertaking, Star diamond currently intends to await the publication of this decision before responding to this notice.
Star Diamond vigorously pursues legal proceedings and is committed to taking all necessary measures to protect Star diamond and its shareholders of the practices and conduct of Rio Tinto Canada. Star diamond will provide further updates on these issues as developments warrant.
About Star Diamond Corporation
Star Diamond Corporation is a Canadian company engaged in the acquisition, exploration and development of mineral properties. Actions of Star diamond trade on the Toronto Stock Exchange under the symbol “DIAM”. The Star Diamond Horn Fort kimberlites (including the Star Project – Orion South Diamond (the “Project”) are located in the Saskatchewan in close proximity to established infrastructure, including paved highways and the power grid, which provide significant benefits for future mine development. During 2018, Star diamond announced the positive results of a preliminary independent economic analysis (the “PEA”) on the project. The PEA has estimated that 66 million carats of diamonds could be recovered from an open pit mine over a project life of 38 years, with a net present value (“NPV”) (7%) of $ 2.0 billion after tax, an internal rate of return (“IRR”) of 19% and an after-tax payback period of 3.4 years after the start of diamond production (see press release from April 16, 2018 ).
All technical information in this press release has been prepared under the supervision of George Read, Senior Technical Advisor, Registered Professional Geoscientist in the Provinces of Saskatchewan and British Columbia and Mark Shimel , project manager, professional geoscientist registered in the province of Saskatchewan , which are Star diamond “Qualified Persons” as defined in NI 43-101.
Caution regarding forward-looking statements
This press release contains forward-looking statements as defined by certain securities laws, including the “regulatory” provisions of Canadian securities law and the United States Private Securities Litigation Reform Act of 1995. The information prospects are often, but not always, identified. by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “foresee”, “target”, “plan”, “guide” , “Power”, “”, “should”, “could”, “estimate”, “predict” or similar words suggesting future results or language suggesting a prospect. In particular, statements concerning Star diamond future operations, future exploration and development activities, other development plans or litigation plans constitute forward-looking statements. By their nature, the terms referring to mineral reserves, mineral resources, Star diamond PEA or Legal Procedures constitute forward-looking statements. Forward-looking statements contained or implied in this press release include, without limitation, statements regarding the processing, analysis and reporting of the results of bulk samples previously collected by Rio Tinto Canada and any timelines; diamond breakage reports and other steps to complete processing, diamond recovery and reporting of all diamond results on samples previously taken from the ten bulk sampling trenches dug by Rio Tinto Canada in 2019; statements relating to Star diamond intention to perform the Undertaking; statements relating to Judicial Procedures; disclosure regarding economics and project parameters presented in the PEA including, but not limited to, IRR, NPV and other economic costs and information, diamond carats to be recovered, period of after-tax recovery, tonnes of kimberlite to be mined, carats per tonne to be recovered (grade), diamond prices, project life, mine life, capital costs and mine life pre-production period; declarations relating to mineral resources and / or reserves; statements relating to the approval of the development of the Star – Orion South diamond project; statements relating to the future development of the Star – Orion South diamond project and associated timelines; statements regarding environmental permits and approvals; statements regarding metallurgical investigations, appraisals and test work, including diamond fracture studies; and the potential proportion of Type IIa diamonds in the Star and Orion South kimberlites and the potential to recover large, high quality diamonds.
These forward-looking statements are based on Star diamond current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. There are risks that forward-looking statements will not be realized due to a number of factors, including, but not limited to, developments in world diamond markets, changes in valuations of diamonds, risks associated with fluctuations in the Canadian dollar and other currencies against the United States. dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Rio Tinto Canada or Star diamond , the effects of competition on the markets in which Star Diamond operates, the risks related to Legal Procedures and legal proceedings to enforce the Undertaking, the risks related to the potential dilution of Star diamond the interest in the project, the impact of the COVID-19 pandemic, the risks associated with the operation of the bulk sampling plant on site and the treatment methods used by Rio Tinto Canada and their effectiveness, risks associated with diamond breakage and cost overruns and other consequences arising from Rio Tinto Canada’s diamond mining and recovery methods, risks associated with Star diamond need additional funding and Star diamond the ability to raise this financing, the impact of changes in laws and regulations governing mineral exploration and development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and additional risks described in Star diamond the most recently filed annual information form, annual and interim management reports, press releases and technical reports. The anticipation and success of Star Diamond in managing the aforementioned risks could cause actual results to differ materially from those anticipated in these forward-looking statements.
Even if Star diamond considers that the assumptions contained in the forward-looking statements are reasonable based on the information currently available to it, these assumptions may prove to be inaccurate. When making decisions about Star diamond , investors and others should not place undue reliance on such statements and should carefully consider the above factors as well as other uncertainties and potential events. Unless required by applicable securities law, Star diamond does not undertake to update any forward-looking statements contained in this document.
SOURCE Star Diamond Corporation
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