Shore Gold Inc announced that the consolidation of the Fort à la Corne mineral properties and the concurrent Option to Joint Venture Agreement with Rio Tinto Exploration Canada Inc to develop these properties (including the Star Orion Diamond Project) has boosted its results during the quarter ended June 30, 2017.

These steps led to a reversal of previously recorded impairments relating to exploration and evaluation assets amounting to US$ 44.5 million, as a result of which the Company recorded net income of $43.0 million or $0.14 per share compared to a net loss of $1.9 million or $0.01 per share for the same period in 2016.

For the same reason, over the six months ended June 30, 2017, the Company recorded net income of $42.2 million or $0.14 per share compared to a net loss of $3.3 million or $0.01 per share for the same period in 2016.

Other important highlights of the period included the consolidation of the Fort à la Corne mineral properties (including the Star - Orion South Diamond Project), resulting in Shore holding a 100% interest with Newmont Canada FN Holdings ULC increasing its interest to a 19.9% shareholder of the Company; the concurrent Option to Joint Venture Agreement with Rio Tinto Exploration Canada Inc. for the Fort à la Corne mineral properties (including the Star - Orion South Diamond Project); and the related closing of a subscription by RTEC for 5.6 million Common Shares and 5.6 million Common Share purchase warrants for aggregate gross proceeds of $1.0 million.

As of August 10, 2017, the Company had approximately $2.4 million in cash and cash equivalents and short-term investments (excluding $0.8 million in restricted cash). A portion of the Company’s cash and cash equivalents and short-term investments will be used to complete the 2017 programmes as well as advance certain aspects of the Star - Orion South Diamond Project, including the environmental assessment process and assessment and test work programmes required for an updated feasibility study, as well as for general corporate matters, Shore Gold said.

In a related development, media reports state that Shore Gold Inc has asked its shareholders to vote in favor of a resolution to change the company’s name to Shore Diamond Corp at the annual meeting which is now scheduled for Sept 6.

A circular issued to shareholders by the Company reportedly explained that “the rebranding will ensure that investors and stakeholders will better understand the … core business.”