Rio Tinto sells stake in Canada diamond project



29th November 2023
By: Mariaan Webb
Creamer Media Senior Deputy Editor Online

Diversified miner Rio Tinto is selling its 75% interest in the Fort à la Corne diamond project, in central Saskatchewan, to joint venture (JV) partner Star Diamond Corp, for shares in the Canadian junior.

Star Diamond will issue Rio Tinto Exploration Canada (RTEC) shares that will result in the company owning a 19.9% stake in the exploration and development company.


Rio Tinto head of exploration Dave Andrews said that the majority of the group’s exploration programme was now firmly focused on metals and minerals to support the energy transition.

“Although we will no longer have direct involvement in the project, we are pleased to be able to maintain our interest in the project by gaining a 19.9% ownership interest in Star Diamond. After more than five years, we continue to see potential in the project and believe it can be a significant contributor to both the local communities around the Fort à la Corne property and the broader Saskatchewan economy."


RTEC will transfer to Star Diamond ownership of the trench cutter drill rig, used by RTEC to complete its prior bulk sampling programme at Fort à la Corne, and the bulk sample plant, including the Tomra XRT diamond sorting machine that is on site.

"Acquiring 100% ownership of the project will be a major accomplishment for Star Diamond and its shareholders,” commented Star Diamond president and CEO Ewan Mason.

“We are grateful to Rio Tinto for the significant monetary investment and expertise it has contributed to the project over the past more than five years, which has meaningfully advanced what Star Diamond believes is one of the most promising diamond projects in the world," he said.

Upon completion of the transactions that are the subject of the agreement, Star Diamond will have full control and responsibility for the project, the existing JV agreement between RTEC and Star Diamond will terminate, and Star Diamond will release and indemnify RTEC for liabilities arising from or relating to the project, all in exchange for a $4-million payment from RTEC to Star Diamond.

RTEC has agreed that it will provide on Star Diamond's behalf, for up to five years following closing, letters of credit in the aggregate amount of no more than C$9.9-million to secure certain environmental remediation and reclamation obligations related to the project. Star Diamond will be obliged to repay any amounts drawn on these letters of credit and such repayment obligations will be secured against the project and its assets.

Rio Tinto sells stake in Canada diamond project, ups interest in copper

Rio Tinto is reshuffling its interests in two Canadian projects as the global miner seeks to focus on assets 

By Cecilia Jamasmie November 29, 2023 

The Casino copper-gold project in Canada’s Yukon. Credit: Western Copper and Gold

Rio Tinto (ASX, LON: RIO) is reshuffling its interests in two Canadian projects as the global miner seeks to focus on assets considered key for the world’s transition to a green economy, such as copper and lithium.

The company has decided to sell its 75% interest in the Fort à la Corne diamond project, in central Saskatchewan, to joint venture partner Star Diamond (TSX: DIAM), in exchange for shares in the junior.

As a result, result Rio Tinto Exploration Canada (RTEC) will own a 19.9% stake in the Canadian exploration and development company.

Rio Tinto head of exploration Dave Andrews said the company was now “firmly focused” on identifying opportunities in metals and minerals that support the energy transition.

“We are grateful to Rio Tinto for the significant monetary investment and expertise it has contributed to the project over the past more than five years, which has meaningfully advanced what Star Diamond believes is one of the most promising diamond projects in the world," president and CEO Ewan Mason noted.

Rio Tinto’s move follows years of tension between the partners over the terms of their development agreement. The situation saw both companies faced off in court and, at one point Star Diamond considered cutting RTEC out of the project.

The partners reached an agreement on the subject in December 2021, after which RTEC put the project on hold until it could determine whether it wanted to continue or exit the venture. The camp was demobilized, and the project put on care and maintenance in the first quarter of 2023.

Copper and lithium

Rio Tinto has also moved to increase its stake in Canada’s Western Copper and Gold (TSX: WRN), which is advancing the copper-gold Casino project in the Yukon.

Under the deal, Rio Tinto Canada is acquiring 3,468,208 common shares at a price of C$1.73 per share, or about C$6 million ($4.4m) total. This increases Rio Tinto’s ownership to 9.7% of Western’s outstanding common shares.

Vancouver-based Western Copper and Gold, which remains the sole owner of the Casino project, said it would use the proceeds of this fresh investment to fund specific areas of study with the aim of progressing through permitting to a development phase of the proposed mine.

“We are pleased that Rio Tinto has elected to continue to invest and work with Western to advance the Casino Project, with a focus on furthering infrastructure development and streamlining the regulatory process,” President and CEO Paul West-Sells said in the statement.

Rio Tinto chief executive officer Jakob Stausholm recently said in an interview that the company continued to look for ways to increase exposure to key minerals and metals, particularly copper and lithium.