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The Saskatoon company behind a proposed diamond mine east of Prince Albert says an international mining giant’s attempt to exercise its options and gain a controlling stake in the project did not meet the terms of the initial agreement.

Star Diamond Corp. said Tuesday a review conducted by its independent directors also concluded Rio Tinto Exploration Canada Inc.’s claimed expenditures on the Star-Orion South diamond project also did not comply with the 2017 deal.

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At the same time, Star Diamond said in a news release, it believes Rio Tinto has “expended significant funds,” intends to continue doing so this year and has generally acted in a way that suggests the proposed mine “warrants significant continued investment.”

Rio Tinto, one of the world’s largest mining companies, said in November it planned to exercise all of its options under the 7½-year deal, and spend $75 million to acquire a 60 per cent stake in the project well before it had to make a decision.