Starfield Resources and Thanda Resources will combine forces to explore for diamonds at Starfield’s Ferguson Lake project in Nunavut, Canada.

If resources are found, the companies will also develop the project.

Under the agreement, Thanda will initially earn a 50% participating stake in the joint venture by paying $6.5m towards cumulative exploration expenditure over a three-year period.

Thanda president Sheila Ogilvie-Harris said the company has already identified several targets and will start its initial drilling programme this month.