Star Diamond notifies Rio Tinto of JV noncompliance

Image: Star Diamond Corporation

Star Diamond Corporation has noted that Rio Tinto Exploration Canada did not comply with the terms of the joint venture (JV) agreement for the Star-Orion South diamond project in Saskatchewan.

The diamond-focussed company advised Rio Tinto to immediately comply with all of its obligations relating to Star-Orion’s operations and expenditures and any exercise of options.

Star Diamond also demanded Rio Tinto to immediately provide all information required under the agreement.

The former stated it had not been provided with any meaningful data from Rio Tinto’s drilling operations at the Star-Orion South project.

“Star Diamond believes that RTEC’s continuing actions and conduct in relation to the project are consistent with a belief by RTEC that the project warrants significant continued investment,” Star Diamond stated.

“Star Diamond believes that RTEC has expended significant funds at the project to date, and that RTEC intends to do so during 2020.

“Star Diamond looks forward to receiving all technical and other data from RTEC’s operations to date at the project as soon as practicable.”

The company could proceed with a court process or negotiated solution to resolve these issues.

Australian Mining has approached Rio Tinto for comment.

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