Star Diamond: Rio Tinto Has No Right to Call JV Management Meeting
July 08 2021 - 8:46AM
Dow Jones News
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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