Star Diamond Corporation has announced its agreement to acquire the remaining 50% interest in the Buffalo Hills Diamond Project in north-central Alberta from Canterra Minerals. The acquisition will be completed through the issuance of 17.5 million common shares, valued at $1.1 million.
Upon completion of the deal, Star Diamond will hold 100% of the project, which spans 4,800 hectares and contains 38 individual kimberlite bodies, 26 of which are diamond-bearing. The project is located in the Buffalo Hills Kimberlite District, known for its accessible diamond-bearing kimberlites, including K6 yellow diamonds.
Star Diamond President and CEO Ewan Mason expressed excitement about gaining control of the Buffalo Hills Diamond Project and the discovery of anomalous levels of Type IIa diamonds and fancy yellow diamonds during an examination of a diamond parcel collected in 2010. Further work and a larger bulk sample are planned to determine the economic viability of the kimberlite pipes on the property.
Canterra Minerals President and CEO Chris Pennimpede stated confidence in Star Diamond’s ability to maximize the value of the Buffalo Hills Diamond Project and expressed the company’s focus on advanced stage copper and gold exploration in another region.
The completion of the acquisition is subject to customary closing conditions, including approval from the TSX, and all consideration shares will be subject to a four-month holding period. This acquisition marks a significant development in the diamond exploration and mining sector in Canada.
