Rio Tinto Backs Right to Call Management Meeting in JV with Star Diamond
08 Luglio 2021 - 8:23PM
Dow Jones News
By Adriano Marchese
--Rio Tinto defends right to call a joint venture management
meeting despite protests from Star Diamond.
--Rio Tinto claims courts denied Star Diamond from preventing a
management meeting call in late June.
Anglo-Australian metals and mining company Rio Tinto PLC said
Thursday that it does have the right to call a management committee
meeting of a joint venture after Star Diamond Corp. claimed it
couldn't on the grounds that the joint venture wasn't validly
formed.
"Star Diamond's latest attempt to prevent Rio Tinto from
exercising that right was denied by the court on June 24," a Rio
Tinto spokesperson said.
Earlier on Thursday, Star Diamond said that Rio Tinto didn't
have the right to call or hold a meeting of the joint venture
management committee and that the joint venture hadn't been validly
formed in November 2019.
According to Star Diamond statements made in November 2019, the
Canadian mineral-properties exploration and development company was
notified by Rio Tinto Exploration Canada Inc. that it exercised its
option to the joint venture agreement entered into in 2017 in which
Rio Tinto could earn up to a 60% interest in the Star-Orion South
diamond project.
In February 2020, Star Diamond said in a statement that a review
by a special committee found that the exercise of the options
didn't comply with the terms of the agreement.
On Thursday, Star Diamond said it sent a letter to Dave Andrews,
head of exploration growth and innovation at Rio Tinto, in which it
claimed the Rio Tinto misused its "economic clout to misappropriate
from Star Diamond and its shareholders" a significant portion of
the value of the purported joint venture project.
"Star Diamond has also advised Rio Tinto that any attempt to
hold such a meeting, or to approve any work plan or budget or make
any other decision on behalf of the purported joint venture, will
in Star Diamond's view be invalid," the company said.
"Rio Tinto disagrees with Star Diamond's interpretations in all
material respects," the Rio Tinto spokesperson responded.
The Star-Orion South diamond project is located in Saskatchewan,
part of the Fort a la Corne mineral dispositions.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
July 08, 2021 14:17 ET (18:17 GMT)
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