TSX: DIAM
SASKATOON, SK, Aug. 10,
2023 /CNW/ - Star Diamond
Corporation ("Star Diamond" or the "Company") reports that
the unaudited financial results for the quarter ended June 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 first quarter, 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 June 30, 2023, the
Company continued negotiations with Rio Tinto Canada to assess
alternatives regarding the Project.
Quarterly Results
For the three months ended
June 30, 2023, the Company recorded a
net loss of $0.9 million, or
$0.00 per share (basic and fully
diluted), compared to a net loss of $0.7
million, or $0.00 per share,
for the comparative period in 2022. This greater net loss was due
to a $0.3 million non-cash loss on
the fair value re-measurement of the Company's investment in Wescan
Goldfields Inc. offset by a 20% reduction in expenditures.
Year to Date Results
For the six months ended
June 30, 2023, the Company recorded a
net loss of $1.2 million, or
$0.00 per share, compared to a net
loss of $1.5 million, or $0.00 per share, for the same period in 2022.
This 20% decrease, period over period, was due to lower
administrative and exploration and evaluation expenditures
incurred, offset by higher consulting and professional fees and
corporate development costs.
At June 30, 2023 the Company had
$1.0 million (December 31, 2022 – $2.6
million) in cash and cash equivalents and working capital of
$0.7 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
June
30,
2023
|
As at
December
31,
2022
|
Current
assets
|
$ 1.2
M
|
$ 2.7
M
|
Investments and other
assets
|
0.6 M
|
0.4 M
|
Current
liabilities
|
0.5 M
|
0.7 M
|
Non-current
liabilities
|
0.2 M
|
- M
|
Shareholders'
equity
|
1.1 M
|
2.4 M
|
Condensed
Consolidated Statements of Loss
|
Three Months
Ended June 30, 2023
|
Three Months
Ended June 30,
2022
|
Six Months
Ended June 30, 2023
|
Six Months
Ended June 30, 2022
|
Interest and other
income
|
$ -
M
|
$
- M
|
$ -
M
|
$ - M
|
Expenses
|
0.6 M
|
0.7 M
|
1.2 M
|
1.4 M
|
Loss before undernoted
items
|
0.6 M
|
0.7 M
|
1.2 M
|
1.4 M
|
Investment in Wescan
Goldfields Inc. and other items
|
(0.3) M
|
0.0 M
|
- M
|
(0.1) M
|
Net loss for the
period
|
0.9 M
|
0.7 M
|
1.2 M
|
1.5M
|
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
June 30,
2023
|
Quarter Ended
June 30,
2022
|
Cash flows used in
operating activities
|
$
(1.5) M
|
$
(4.0)M
|
Cash flows from
financing activities
|
(0.1)
M
|
5.7 M
|
Net increase (decrease)
in cash
|
(1.6) M
|
1.7 M
|
Cash – beginning of
period
|
2.6 M
|
1.3 M
|
Cash – end of
period
|
1.0 M
|
3.0 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. Discussions are ongoing with Canterra to determine
possible future work programs and a potential strategic path
forward for the property. 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 Province of Saskatchewan and Alberta, who are the Company's "Qualified
Persons" under the definition of NI 43-101.
Website www.stardiamondcorp.com
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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