Star Diamond Shares Plummet as JV Partner Considers Potential Project Exit

By Adriano Marchese

Star Diamond Corp. shares fell precipitously on Wednesday after the company said its joint venture partner Rio Tinto Exploration Canada Inc. is considering a potential exit from their project in the province Saskatchewan.

At 9:55 a.m. ET, shares were trading 61% lower at C$0.11.

On Tuesday after markets closed, the company said that Rio Tinto exercised its voting power to close the Star-Orion South Diamond project mine site for the rest of the year, and that it wouldn't commit additional capital to the project in that time.

Star Diamond holds a 25% interest in certain Fort a la Corne mineral dispositions which includes the Star-Orion South Diamond project, while Rio Tinto Exploration Canada, a subsidiary of Rio Tinto PLC, owns the rest.

Star Diamond said that during their joint committee meeting, Rio Tinto said it intends to review its alternatives regarding the project, including a potential exit.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

June 29, 2022 10:19 ET (14:19 GMT)

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