TSX: DIAM
SASKATOON, SK, Nov. 9, 2023
/CNW/ - Star Diamond Corporation ("Star Diamond" or the
"Company") reports that the unaudited financial results for the
quarter ended September 30, 2023,
will be filed today on SEDAR+ and may be viewed
at www.sedarplus.ca once posted.
Overview
Star Diamond Corporation is a Canadian natural resource
company focused on exploring and developing
Saskatchewan's diamond resources. Star
Diamond currently holds, through a joint venture arrangement with
Rio Tinto Exploration Canada Inc. ("Rio Tinto Canada"), a
wholly-owned subsidiary of Rio Tinto plc, a 25% interest in certain
mineral properties (which includes the Star – Orion South Diamond
Project, or the "Project") within the Fort à la Corne diamond
district of central Saskatchewan,
Canada. These properties are in close proximity to
established infrastructure, including paved highways and the
electrical power grid, which provide significant advantages for
future mine development.
The Company also holds a 50% interest in the exploration and
evaluation properties and assets of the Buffalo Hills JV located in
north-central Alberta, Canada.
Canterra Minerals Corporation ("Canterra") holds the remaining 50%
interest. Canterra is the operator of the Buffalo Hills JV.
Fort à la Corne mineral
properties
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 Project on care and
maintenance through December 31,
2022. Rio Tinto Canada also advised that, subject to
fulfilling its existing obligations, it did not intend to commit
additional capital to the Fort à la Corne properties during
2022 beyond what was necessary for care and maintenance. Rio Tinto
Canada also advised Star Diamond
that it intended to conduct a near-term review of its alternatives
regarding the Fort à la Corne properties, which included its
potential exit. On October 21,
2022, Star Diamond announced
that Rio Tinto Canada had stated that it intended to fully
de-mobilize the leased on-site camp. During the second quarter of
2023, the personnel camp was fully de-mobilized and the Project was
placed on care and maintenance.
Recent activities relating to the Star - Orion South Diamond
Project and Fort à la Corne mineral properties
During the
quarter ended September 30, 2023, the
Company continued negotiations with Rio Tinto Canada to assess
alternatives regarding the Project.
Quarterly Results
For the three months ended
September 30, 2023, the Company
recorded a net loss of $0.6 million,
or $0.00 per share (basic and fully
diluted), compared to a net loss of $0.5
million, or $0.00 per share,
for the comparative period in 2022.
Year to Date Results
For the nine months ended
September 30, 2023, the Company
recorded a net loss of $1.8 million,
or $0.00 per share, compared to a net
loss of $2.1 million, or $0.00 per share, for the same period in 2022.
This 14% decrease, period over period, was due to lower
administrative expenditures incurred, offset by higher consulting
and professional fees, corporate development costs and exploration
and evaluation expenditures.
At September 30, 2023, the Company
had $0.5 million (December 31, 2022 – $2.6
million) in cash and cash equivalents and working capital of
$0.1 million (December 31, 2022 - $2.0
million). The decrease in working capital was the
result of general and administrative, and exploration and
evaluation expenditures incurred during the quarter. The Company
believes it has sufficient liquidity to fund general and
administrative costs and certain exploration expenditures through
to the end of 2023.
Selected financial highlights include:
Condensed
Consolidated Statements of Financial Position
|
As at
September
30,
2023
|
As at
December
31,
2022
|
Current
assets
|
$ 0.7
M
|
$ 2.7
M
|
Investments and other
assets
|
0.6 M
|
0.4 M
|
Current
liabilities
|
0.6 M
|
0.7 M
|
Non-current
liabilities
|
0.1 M
|
-
M
|
Shareholders'
equity
|
0.6 M
|
2.4 M
|
Condensed
Consolidated Statements of Loss
|
Three Months
Ended
September 30,
2023
|
Three Months
Ended
September 30,
2022
|
Nine
Months
Ended
September 30, 2023
|
Nine Months
Ended
September 30, 2022
|
Expenses
|
$ 0.6
M
|
$ 0.3
M
|
$ 1.9
M
|
$ 1.7
M
|
Loss before undernoted
items
|
0.6 M
|
0.2 M
|
1.8 M
|
1.7 M
|
Investment in Wescan
Goldfields Inc. and other items
|
- M
|
(0.3) M
|
- M
|
(0.4) M
|
Net loss for the
period
|
0.6
M
|
0.5
M
|
1.8
M
|
2.1
M
|
Net loss per share for
the period (basic and diluted)
|
0.00
|
0.00
|
0.00
|
0.00
|
Condensed
Consolidated Statements of Cash Flows
|
Quarter Ended
September 30, 2023
|
Quarter Ended
September 30, 2022
|
Cash flows used in
operating activities
|
$ (2.0)
M
|
$ (4.4)
M
|
Cash flows from
investing activities
|
- M
|
0.6 M
|
Cash flows (used in)
from financing activities
|
(0.1)
M
|
5.7 M
|
Net increase (decrease)
in cash and cash equivalents
|
(2.1) M
|
1.9 M
|
Cash and cash
equivalents – beginning of period
|
2.6 M
|
1.2 M
|
Cash and cash
equivalents – end of period
|
0.5 M
|
3.1 M
|
Outlook
Fort à la Corne mineral properties
Star Diamond continues to work with Rio
Tinto Canada in assessing
alternatives regarding the Project. These discussions remain
ongoing and there is no certainty that any agreement will be
reached between Star Diamond and
Rio Tinto Canada
regarding any such potential arrangements. Management
believes that the negotiated return of the Project on reasonable
terms is critical to its long-term success.
Buffalo Hills mineral properties
Management continues
to review the recent results from the diamond valuation and typing
analysis. A more detailed update on activities at the Buffalo Hills
JV will be provided as it becomes available.
About Star Diamond Corporation
Star Diamond
Corporation is a Canadian based corporation engaged in the
acquisition, exploration and development of mineral properties.
Shares of Star Diamond trade on the
Toronto Stock Exchange under the trading symbol "DIAM".
Star Diamond holds, through a joint
venture arrangement with Rio Tinto Canada, a 25% interest in
certain Fort à la Corne kimberlites (including the Star – Orion
South Diamond Project). These properties are located in central
Saskatchewan, in close proximity
to established infrastructure, including paved highways and the
electrical power grid, which provide significant advantages for
future mine development. The Company also holds a 50% interest in
the exploration and evaluation properties and assets of the Buffalo
Hills JV located in north-central Alberta, Canada. Canterra Minerals Corporation
("Canterra") holds the remaining 50% interest. Canterra is the
operator of the Buffalo Hills JV.
Technical Information
All technical information in
this press release has been prepared under the supervision of
George Read, Senior Vice President
Corporate Development, Professional Geoscientist in the
Provinces of Saskatchewan and
British Columbia and Mark Shimell, Vice President Exploration,
Professional Geoscientist in the Provinces of Saskatchewan and Alberta, who are the Company's "Qualified
Persons" under the definition of NI 43-101.
Website www.stardiamondcorp.com
Stay Connected with
Us:
Twitter: https://twitter.com/StarDiamondCorp
LinkedIn: https://www.linkedin.com/company/star-diamond-corp
Facebook:
https://www.facebook.com/people/Star-Diamond-Corp/100058096376664/
Instagram: https://www.instagram.com/stardiamondcorp/
Caution Regarding
Forward-looking Statements
This press release contains "forward-looking statements" and/or
"forward-looking information" (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate" or "believes", or the negative connotation
thereof or variations of such words and phrases or state that
certain actions, events or results, "may", "could", "would",
"will", "might" or "will be taken", "occur" or "be achieved" or the
negative connotation thereof. All statements, other than statements
of historical fact, are forward-looking statements.
These forward-looking statements are based on Star Diamond's current beliefs as well as
assumptions made by and information currently available to
Star Diamond and involve inherent
risks and uncertainties, both general and specific. Risks exist
that forward-looking statements will not be achieved due to a
number of factors including, but not limited to, statements
regarding Rio Tinto Canada, the Company's ability to obtain
financing to further the exploration, evaluation and/or development
of exploration and evaluation properties in which the Company holds
interest, the economic feasibility of any future development
projects, developments in world diamond markets, changes in diamond
prices, risks relating to fluctuations in the Canadian dollar and
other currencies relative to the US dollar, the impact of changes
in the laws and regulations regulating mining exploration,
development, closure, judicial or regulatory judgments and legal
proceedings, operational and infrastructure risks and the
additional risks described in Star
Diamond's most recently filed Annual Information Form,
and annual and interim MDA.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. In addition,
forward-looking statements are provided solely for the purpose of
providing information about management's current expectations and
plans and allowing investors and others to get a better
understanding of our operating environment. Accordingly, readers
should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of
the date hereof and Star Diamond
assumes no obligation to update any forward-looking statements,
except as required by applicable laws.
SOURCE Star Diamond Corporation