Star Diamond acquires Rio Tinto’s 75% interest in the Fort à la Corne diamond project

Star Diamond (TSE: DIAM) has completed its previously announced transaction with Rio Tinto Exploration Canada  (RTEC) whereby RTEC has transferred to Star Diamond all of its 75% interest in the Fort à la Corne diamond project in central Saskatchewan. 

Star Diamond now owns 100% of the project. The company has issued 108,204,112 common shares to RTEC, such that RTEC and its affiliates now own 19.9% of Star Diamond’s issued and outstanding common shares.

RTEC and Star Diamond also entered into an investor rights agreement whereby RTEC has been granted certain pre-emptive rights to maintain its 19.9% ownership interest in Star Diamond in connection with future financings undertaken by Star Diamond, and RTEC has agreed to certain standstill protections provided that RTEC has the right to increase its 19.9% ownership position, should Star Diamond receive an acquisition proposal.