Ashton Canada put on the block

Vancouver — Having acquired the Australian diamond assets of Ashton Mining, diversified mining giant Rio Tinto (RTP-N) intends to sell its 65.9% stake in Ashton Mining of Canada (ACA-T).

RBC Dominion Securities has been hired by the parent company to solicit expressions of interest and to assist in completing any sale.

The Rio Tinto group already has a diamond exploration arm in Canada through its wholly owned subsidiary, Kennecott Canada Exploration. With its takeover of Ashton Mining, the major now holds controlling stakes in two Canadian diamond exploration companies that compete on the same turf.

Ashton Canada’s Board of Directors has established a special committee to ensure that any sale or transaction creates the maximum value for its shareholders.

Ashton Canada holds large exploration land packages in Alberta, Nunavut, the Northwest Territories, Quebec and Ontario.