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Re: A challenge.Star Diamond accuses Rio Tinto of 'bad faith predatory practices' in lawsuit Author of the article:Alex MacPherson • Saskatoon StarPhoenix Publishing date:March 9, 2020 • 3 minute read An aerial view of Shore Gold Inc.'s Star-Orion South Project east of Prince Albert. The Saskatoon-based company has been working for years to establish a diamond mine on the site. Courtesy Shore Gold Inc. An aerial view of Star Diamond Corp.'s Star-Orion South Project east of Prince Albert. SHORE GOLD INC. / Saskatoon Share TRENDING Saskatchewan warned to brace for more COVID-19 deaths, cases SHA writing ethical guidelines for triaging COVID-19 patients Triple homicide in Prince Albert: Two adults, seven-year-old boy dead at P.A. home Saskatchewan eases trucking rules for delivery of COVID-19 goods Man who fell into South Sask. River was trying to rescue dog Article content A Saskatoon junior mining company is accusing one of the world’s largest mining conglomerates of “bad faith predatory practices” aimed at diluting its stake in a proposed diamond mine east of Prince Albert. Star Diamond Corp. levelled that accusation against Rio Tinto Exploration Canada Inc., its partner on what could become Saskatchewan’s first commercial diamond mine, in reams of court documents filed this week. Star Diamond accuses Rio Tinto of 'bad faith predatory practices' in lawsuit The documents were filed days after the Saskatoon-based company objected to Rio Tinto’s exercise of options in the seven-and-a-half-year deal, which would allow it to acquire a 60 per cent stake in the Star-Orion South project for $75 million. Star Diamond’s statement of claim alleges Rio Tinto spent $103 million, double the budgeted exploration cost, to complete less than one third of the work, while breaching the deal by not sharing the results of its drilling. Statements of claim contain allegations that have not been tested in court. Advertisement STORY CONTINUES BELOW This advertisement has not loaded yet, but your article continues below. The drilling results “must have persuaded (Rio Tinto) that the properties have significant commercial value,” Star Diamond’s lawyers said in the 25-page claim. Rio Tinto’s conduct “is deliberately calculated to take advantage of Star Diamond’s position as the smaller joint venture partner … with the ultimate goal of allowing (Rio Tinto) to acquire a greater participating interest for its own benefit,” the claim states. Star Diamond asked the court for a host of remedies in its claim, including declarations that Rio Tinto did not exercise its options properly and breached the agreement by failing to provide information and not conducting work properly. Advertisement STORY CONTINUES BELOW This advertisement has not loaded yet, but your article continues below. The claim also asks the court to halt a meeting at which Rio Tinto’s $106-million exploration budget for 2020 could be approved — which, the document notes, would require Star Diamond to fund to the tune of 40 per cent. “To require Star Diamond to fund its proportionate share of an additional ($106 million) without first providing access to results, data or information that confirms the project has significant commercial merit is … unreasonable,” the claim states. The Saskatoon firm is also seeking unspecified damages for breach of contract and an order forcing Rio Tinto to provide the information. Advertisement STORY CONTINUES BELOW This advertisement has not loaded yet, but your article continues below. The Anglo-Australian mining giant had not filed a statement of defence by Friday afternoon. “Rio Tinto will be strongly defending the legal proceedings on the basis that we have validly exercised the options,” the company said in a statement. Star Diamond said in a news release this week that it did not plan to comment further. The original 2017 deal between the companies was greeted with enthusiasm by industry insiders and investors, who regard Rio Tinto as a serious player whose involvement signalled there was a real chance the project would be developed into a mine. It is thought the project in the Fort a la Corne forest is Canada’s most advanced diamond exploration venture, and that Rio Tinto will need it if it wants to remain in the diamond business once two of its current mines close in the next few years. Advertisement STORY CONTINUES BELOW This advertisement has not loaded yet, but your article continues below. If it proceeds, the mine is expected to cost $1.4 billion to build, employ 700 people continuously over its 38-year life and generate billions of dollars in corporate and municipal taxes, as well as royalties. While nearby James Smith Cree Nation has expressed dissatisfaction with the provincial government’s environmental approval process, the government has given no indication it is interested in re-opening consultations. amacpherson@postmedia.com twitter.com/macphersona https://thestarphoenix.com/news/local-news/star-diamond-accuses-rio-tinto-of-bad-faith-predatory-practices-in-lawsuit/ |
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Msg # | Subject | Author | Recs | Date Posted |
50710 | Re: A challenge. | GhostofUrbanCassavant | 0 | 3/31/2020 12:01:54 AM |