RIOCD Rio Tinto Ltd

By Adriano Marchese

Star Diamond Corp. said Thursday that Rio Tinto PLC has no right to call or hold a meeting of the joint venture management committee, insisting that no such joint venture has been validly formed.

Rio Tinto couldn't immediately be reached for comment.

In a letter to Head of Exploration Growth & Innovation at Rio Tinto Dave Andrews, Star Diamond said the company misused its economic clout to misappropriate from Star Diamond and its shareholders of a significant portion of the value of the purported joint venture project.

The Star-Orion South Diamond Project is located in Saskatchewan, part of the Fort a la Corne mineral dispositions.

According to Star Diamond news releases, in November 2019, the Canadian mineral-properties exploration and development company received a notice by Rio Tinto Exploration Canada Inc. advising for the exercise of its option to joint venture agreement entered into in 2017 in which Rio Tinto could earn up to a 60% interest in the project.

In February 2020, Star Diamond said in a release that a review by a special committee found that the exercise of its options didn't comply with the terms of the agreement.

On Thursday, Star Diamond said it has notified Rio Tinto that no joint venture has yet been validly formed between the two, and therefore Rio Tinto can't call a meeting of the management committee.

"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.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

July 08, 2021 08:40 ET (12:40 GMT)

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