(Kitco News) - Star Diamond (TSX: DIAM) announced yesterday that, at a meeting of the Fort à la Corne joint venture management committee held earlier yesterday, Rio Tinto Exploration Canada exercised its voting power to place the Star–Orion South diamond project on care and maintenance through December 31, 2022.
According to the company’s statement, as part of this, Rio Tinto has advised that, subject to fulfilling its existing obligations, it does not intend to commit additional capital to the project during 2022 beyond what is necessary for care and maintenance.
The company added that Rio Tinto also advised Star Diamond during yesterday's joint venture management committee meeting that Rio Tinto intends to conduct a near-term review of its alternatives regarding the project, including its potential exit.
In a press-release, the company noted that during yesterday's meeting, Rio Tinto stated that it remains pleased with the results of the comprehensive studies and bulk sampling program that have been completed to date at the project.
The company said that its board of directors is disappointed by these decisions, adding that Star Diamond intends to work with Rio Tinto in assessing alternatives regarding the project.
Star Diamond is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Star Diamond's most significant asset is its interest in the Fort à la Corne property in central Saskatchewan.
Star Diamond currently holds, through a joint venture arrangement with Rio Tinto Exploration Canada, a 25% participating interest in certain Fort à la Corne mineral dispositions (including the Star-Orion South diamond project). Rio Tinto Exploration Canada, a wholly-owned subsidiary of Rio Tinto, holds a 75% interest.
The company’s shares were down 48% this afternoon.
