Business
Five Star Diamonds Ltd. Announces Termination of Proposed Transaction With Spirit Banner II Capital Corp. and Provides Corporate Update
TORONTO, Sept. 26, 2019 (GLOBE NEWSWIRE) -- Five Star Diamonds Ltd. (TSX.V: STAR) (the “Company” or “Five Star Diamonds”) provides the following corporate updat
About this update from Trinity One Metals Ltd.
[{"type":"text","content":" TORONTO, Sept. 26, 2019 (GLOBE NEWSWIRE) -- Five Star Diamonds Ltd. (TSX.V: STAR) (the “Company” or “Five Star Diamonds”) provides the following corporate update. Further to the press release dated March 25, 2019, announcing a binding letter of intent (the “LOI”) between the Company and Spirit Banner II Capital Corp. (“SB2”) (TSX.V: SBTC.P) to complete a proposed transaction (the “Transaction”) whereby SB2 would acquire the Company’s diamond projects in Brazil, the parties announce today that they have been unable to negotiate the terms of a definitive agreement satisfactory to both parties and consequently have mutually decided to terminate the LOI and abandon the Transaction. The capital markets for diamond mining projects have been extremely difficult over the past 2 years since the Company listed on the TSX Venture Exchange. The Company intends to explore the possibility of acquiring assets in other commodities, where the capital markets are considered to be more accommodative. To this end, the Company is reviewing possible acquisitions and business combinations for promising new base metal assets. We expect to be able to provide more details of prospective transactions as negotiations advance. If successful, the Company will refocus its efforts on developing these base metal assets at the same time as continuing to seek partners for development of the Company’s diamond assets, likely when the markets are more receptive. The Company is in discussions with strategic investors and partners concerning a range of potential transactions including but not limited to minority investment, mergers or outright acquisitions of some or all of the diamond assets of the Company. The Company owns a 100% interest in five diamond projects, all of which are located in Brazil – Catalao, Riachao, Maravilha, Verissimo and Alecrim. The Company’s principal project and only material project is the Catalao project. On behalf of the Board Matthew Wood Chairman Five Star Diamonds [email protected] For further information, please contact: Five Star Diamonds Limited Rajan “Raj” Rai [email protected]+1 778 835 9200 Cautionary Note Regarding Forward-looking Statements Information set forth in this news release contains forward-looking statements. Although the Company believes that such statements are rea...