Star Diamond Corporation has acquired a 50% stake of the Buffalo Hills Diamond Project from joint-venture partner Canterra Minerals Corporation, making it the site’s full owner. 

In exchange, the Canadian miner, which already owns the other half of the business, will issue 17.5 million common shares in Star Diamond to Canterra. That figure implies a purchase price of CAD 1.1 million ($804,209) for the Alberta, Canada-based exploration project, Star Diamond said Monday.  

The miner will also give Canterra a 1% royalty interest in the site, it noted. 

“In early 2023… [we] conducted an examination of the existing diamond parcel that was collected from a bulk sample previously taken in 2010,” said Star Diamond CEO Ewan Mason. “Our diamond specialist thoroughly analyzed the diamonds and [found] not only anomalous levels of type IIa diamonds in the sample but also a presence of fancy-yellow diamonds with elevated modeled 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.” 

The Buffalo Hill Diamond Project includes 21 mineral leases covering 4,800 hectares and an accessible field of diamond-bearing kimberlites with similarities to Star Diamond’s Fort á la Corne site in Saskatchewan. The miner fully owns that project, after purchasing joint-venture partner Rio Tinto’s 75% share last year.  

“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,” added Canterra CEO Chris Pennimpede. “[We] look forward to maintaining our exposure to the project as a Star Diamond shareholder.” 

Image: A rough diamond. (Star Diamond Corporation)