Star Diamond acquires 75% from RioTinto

Star Diamond Corporation announced the completion of its previously announced transaction with Rio Tinto Exploration Canada Inc. whereby RTEC has transferred to Star Diamond all of RTEC’s 75% interest in the Fort à la Corne diamond project located in central Saskatchewan. Star Diamond now owns 100% of the Project.

In connection with the completion of the Transaction, Star Diamond issued 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, among other things. RTEC has agreed to certain standstill protections provided that RTEC has the right to increase its 19.9% ownership position in the event that Star Diamond receives an acquisition proposal. The Transaction was completed pursuant to an agreement previously jointly announced by Star Diamond and RTEC. Copies of the Agreement and the Investor Rights Agreement are available under Star Diamond’s  website.

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