Rio Tinto signed a four-stage, C$75 million settlement to earn as much as a 60% curiosity within the challenge over a interval of seven.5 years in November 2017. The corporate determined to train its earn-in rights early, in November 2019. Nonetheless, Star Diamond doesn’t consider that the necessities to enact the JV have been accomplished and has taken Rio Tinto to court docket. The case, which additionally seeks damages from Rio Tinto, just isn’t prone to be heard till subsequent 12 months.
The June 17 discover from Rio stated it could be in search of approval for the JV price range at a administration committee assembly of the three way partnership on June 21. If Star is unable to fund its portion of spending, it dangers having its curiosity within the challenge diluted.
As of Could 11, the junior reported money and equivalents of C$4.8 million.
A 2018 prefeasibility examine of the big, low grade Star-Orion challenge outlined a C$1.4 billion open-pit operation with a mine lifetime of 34 years. The challenge, situated 60 km east of Prince Albert, is understood to host bigger stones, together with high-value Kind IIa diamonds and will produce 66 million carats over its mine life.
(This text first appeared within the Canadian Mining Journal)