08:02 AM EDT, 05/16/2025 (MT Newswires) -- Star Diamond ( SHGDF ) on Friday said Spirit Resources will invest $4 million in the company through a private placement of units.

Luxembourg-based Spirit will also provide an interim unsecured loan of $800,000. Proceeds from both will be used to advance a prefeasibility study for the Fort la Corne diamond project in central Saskatchewan.

Star Diamond ( SHGDF ) will issue 133.3 million units at $0.03 apiece to Spirit. Each unit will consist of one share and one warrant to buy a share at $0.04 within the first year, and at $0.05 in the second year. Spirit's stake in the company jumps to 26% stake, from the previous 10%, allowing it to control the company, and appoint two directors to the board.

A special meeting of shareholders will be held. Rio Tinto Exploration Canada, which in 2023 transferred all its interest in the Fort la Corne project to Star, has agreed not to vote against certain matters to be considered at the meeting, including the waiver and termination of the Shareholder Rights Plan and the terms of the private placement, a statement noted.

The outside date for the completion of the private placement is August 29.