Star Diamond acquiring 100% of Buffalo Hills diamond project, Alberta
Star Diamond Corp. [TSX-DIAM], pursuant to a definitive agreement dated July 11, 2024, has acquired the interest of Canterra Minerals Corp. [TSXV-CTM] in the Buffalo Hills diamond project in north-central Alberta, Canada. Upon closing, Star Diamond will hold 100% of the project.
As consideration for Canterra’s 50% interest in the project, Star will issue 17.5 million common shares, representing an implied purchase price of $1.1 million. One-half of the consideration shares are subject to a 12-month lock-up arrangement.
In addition to the consideration shares, Canterra was granted a 1% royalty interest in the project. Completion of this acquisition is subject to certain customary closing conditions, including approval of the TSX.
Ewan Mason, president and CEO of Star Diamond, said: “We are excited to gain control of the 50 per cent of Buffalo Hills diamond project we did not own. In early 2023, we dusted off the file on this property and conducted an examination of the existing diamond parcel that was collected from a bulk sample previously taken in 2010. Our diamond specialist thoroughly analyzed the diamonds and we were astonished to find not only anomalous levels of Type IIa diamonds in the sample but also a presence of fancy yellow diamonds (K6 yellow diamonds) with elevated modelled diamond prices.
“It became clear to us that further work needed to be done and with a number of pipes at surface we believe that a larger bulk sample should be taken to determine how many of the 38 pipes on the property may be economic. Our plan would be to eventually extract a bulk sample and ship it to Fort a la Corne and run the sample through our on-site bulk sample plant.”
Chris Pennimpede, president and CEO of Canterra Minerals, said: “We are confident that Star Diamond will be able to maximize the value of the Buffalo Hills diamond project as a dedicated diamond explorer with complementary assets in the region. Canterra is now focused on advanced-stage copper and gold exploration in the central Newfoundland mining district and looks forward to maintaining its exposure to the project as a Star Diamond shareholder. We will be watching developments with much interest as our equity participation in Star Diamond provides our company with exposure to future success.”
Located approximately 400 km northwest of Edmonton, Alberta, Canada, the Buffalo Hills diamond project includes 21 mineral leases covering 4,800 hectares and is a significant and accessible field of diamond-bearing kimberlites, with similarities to the Fort a la Corne kimberlites in Saskatchewan, Canada. The project is located in the Buffalo Hills kimberlite district, which contains at least 38 individual kimberlite bodies, of which 26 kimberlites are diamond-bearing and a number of which outcrop at surface. Exploration on these kimberlites started in 1996, and small parcels of diamonds have been collected from various exploration programs on many of those considered most prospective.
Star Diamond’s most significant asset is its 100% interest in the Fort a la Corne project in central Saskatchewan. These kimberlites are located in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.