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). As part of these agreements, Star Diamond and Rio Tinto Canada agreed to revised arrangements. Under these new arrangements:
All expenditures on the Fort a la Corne properties prior to December 31, 2021 are the sole responsibility of Rio Tinto Canada;
All expenditures incurred between January 1, 2022 and the public announcement of a decision to develop a diamond mining operation, based upon the completion of a positive feasibility study, will initially be advanced by Rio Tinto Canada. Star Diamond is not required to begin reimbursing Rio Tinto Canada for Star Diamond's share of these expenditures unless and until commercial production has been achieved. As a result, Star Diamond is under no obligation to contribute additional investment to the project until a decision to develop the mine is made and publicly announced;
Once the decision to develop the mine has been announced, Star Diamond will have six months to begin contributing Star Diamond's share of the capital costs and expenditures required to build the mine; and
In exchange for these amendments, the participating interests of Rio Tinto Canada and Star Diamond in the joint venture agreement were adjusted to 75% for Rio Tinto Canada and 25% for Star Diamond (from 60% and 40%, respectively, as per the previous Option Agreement).
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