Star Diamond Corporation, in a crisp and to-the-point statement  announced today that it has commenced legal proceedings in the Court of Queen's Bench for Saskatchewan (Judicial Centre of Regina) against Rio Tinto Exploration Canada Inc. (RTEC) “in relation to RTEC's purported exercise in November 2019 of its four options under the Option to Joint Venture Agreement dated June 22, 2017 (the Agreement)”. 

The Company concluded by saying: “As previously disclosed by Star Diamond in its news press dated February 18, 2020, Star Diamond is committed to enforcing its rights under the Agreement. Star Diamond does not intend to comment further on the legal proceedings, except as required by law.”

It will be recalled as reported earlier, in 2017, the two parties – Star Diamond and RTEC –had entered an Option to Joint Venture Agreement for the Star Orion Project. 

However, since the last few months, ever since Rio Tinto served notice that it intended to exercise its “option” to acquire 60% of the project, differences have emerged between the two parties.

Media reports have indicated the possibility that positive results of the initial exploration studies may have led to Rio Tinto exercising its option much earlier than it was required to do so under the agreement.