Excerpt from the MD&A: | DIAM:CA Message Board Posts

Star Diamond Corporation

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Msg  62202 of 62407  at  8/13/2022 7:40:29 AM  by


The following message was updated on 8/13/2022 7:44:39 AM.

Excerpt from the MD&A:

 "In December 2021, the Company entered into binding agreements with Rio Tinto Canada that comprehensively resolved all disputes between them (see News Release and related filings dated December 9, 2021). Under the amended Fort à la Corne joint venture agreement, expenditures incurred at the Fort à la Corne properties ("carried interest costs") from and after January 1, 2022 are to be 100% advanced by Rio Tinto Canada in the first instance until, among other things: (a) the completion of a feasibility study demonstrating that extraction of diamonds is reasonably justified (economically mineable) and that contemplates the construction and operation of a diamond mining operation having certain minimum requirements; (b) a positive decision has been made to develop such mine; (c) a development program and budget for the construction of such mine has been approved; and (d) public disclosure has been made of the decision to develop such mine. Star Diamond will have no obligation to fund or contribute to carried interest costs until the commencement of commercial production, which will not occur until after the completion of construction of the diamond mine with it generally operating at certain specified thresholds for 90 days. Once a decision to develop the mine has been made and publicly announced, Star Diamond will have six months before it is required to begin contributing to its share of capital costs and expenditures incurred for construction of the mine. These arrangements are intended to ensure that key project milestones, and the certainty associated with them, will have been achieved before Star Diamond has to contribute any additional capital. As part of the December 2021 amendments, the respective participating interests of Rio Tinto Canada and Star Diamond were adjusted to 75% for Rio Tinto Canada and 25% for Star Diamond. On June 28, 2022, Rio Tinto Canada exercised its voting power at a meeting of the Fort à la Corne joint venture management committee to place the Fort à la Corne properties on care and maintenance through December 31, 2022 (see News Release dated June 28, 2022). Rio Tinto Canada also advised that, subject to fulfilling its existing obligations, it does not intend to commit additional capital to the Fort à la Corne properties during 2022 beyond what is necessary for care and maintenance. Rio Tinto Canada also advised the Company that it intends to conduct a near-term review of its alternatives regarding the Fort à la Corne properties, including its potential exit. During the meeting, Rio Tinto Canada stated that it remains pleased with the results of the comprehensive studies and bulk sampling program that have been completed to date at the Project."
   I STRONGLY SUGGEST you read the whole report. Available on SEDAR.

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Msg # Subject Author Recs Date Posted
62203 Re: Excerpt from the MD&A: smallblock 0 8/13/2022 7:57:16 AM

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