09:51 AM EST, 11/15/2019 (MT Newswires) -- (Updates share price.)

Star Diamond (DIAM.TO) rose 13% after the company on Friday said Rio Tinto (RIO) advised the company it plans to exercise its option to acquire a 60% stake in the Star - Orion South diamond project in Saskatchewan.

The company said Rio Tinto's Canadian unit "provided notice for the exercise of all four options under the Option to Joint Venture Agreement entered into in 2017".

That agreement called for Rio Tinto to spend C$65.5 million on exploration and indirect costs to earn a 60% stake in the project, which is exploring potentially diamond-bearing kimberlites in Saskatchewan.

Rio Tinto had until 2024 to complete the option.

Star Diamond said it is reviewing Rio Tinto's notice and will comment further once that review is complete.

The company's shares were last seen up C$0.025 to C$0.22 on the Toronto Stock Exchange.

Price: 0.22, Change: +0.03, Percent Change: +12.82