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Titled S. Darko, the film takes place eight years after the events of the first film and follows Samantha Darko (Daviegh Chase), the younger sister of the first movie's lead character, as she travels across America with her best friend Corey. On the road trip the pair start to witness strange visions.
Chris Fisher (Nightstalker) will direct the film. Kelly, who wrote and directed 2001's Donnie Darko, is not involved in the sequel.
"I am a great admirer of Richard Kelly's film and hope to create a similar world of blurred fantasy and reality," said Fisher.
Donnie Darko starred Jake Gyllenhaal as a teenager who, after a near death experience, is told by a giant bunny that the world will end in 28 days.
Fisher added: "Donnie's not in [the new film] but there are meteorites and rabbits."
S. Darko begins production on May 18. Fox has already secured North American distribution rights for the film.
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