News

Advanced Search

Rio Tinto’s Canada Deal Hits Trouble

Feb 19, 2020 9:59 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Star Diamond Corporation has accused Rio Tinto of not complying with the terms of a joint-venture agreement for operating the Star-Orion South exploration project in Canada.

In 2017, Rio Tinto entered into a deal with the Canadian miner giving it the right to acquire shares in the proposed mine in Saskatchewan. In November, five years earlier than its original deadline, Rio Tinto gave Star Diamond notice it wanted to purchase a 60% stake in the site.

However, a review by a special committee at Star Diamond, together with independent legal counsel, found that Rio Tinto did not comply with all the terms of the agreement, Star Diamond said Tuesday.

Additionally, Rio Tinto has not provided Star Diamond with data from its drilling operations at the site, the Canadian miner said. Despite this, the company still supports Rio Tinto’s involvement in the project. Star Diamond has sent Rio Tinto notice that it must immediately comply with all its obligations under the agreement.

“Star Diamond is committed to taking all actions necessary to ensure that the interests of the corporation, its shareholders and its many Saskatchewan-based and other stakeholders are protected in connection with the project, including by enforcing all of Star Diamond’s rights under the agreement,” the company noted.

Star Diamond has stated its intent to reach a resolution, either through the courts or by a “negotiated solution,” it explained.

Rio Tinto did not respond to a request for comment by Rapaport News at press time.

Image: The Star-Orion South site. (Star Diamond Corp.)
Tags: Rapaport News, Rio Tinto, Star Diamond, Star Diamond Corporation, Star-Orion exploration project
Similar Articles
Nimesh PatelDe Beers CFO to Leave Company
Apr 02, 2020
De Beers chief financial officer Nimesh Patel will exit the company on July 26 to become CFO and
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.