| ||Mon Mar 12, 2001|
Diamond Fields Receives Government Of Namibia's Formal Approval For Joint Venture
| ||Diamond Fields International (DFI-TSE) is pleased to announce that it has received formal approval from the Namibian Minister of Mines and Energy for the joint venture agreement between DFI and Trans Hex Group Limited (TSX-JSE/NSX). |
As reported on March 6, 2001, Diamond Fields, through its wholly-owned Namibian subsidiary, has entered into a joint venture agreement with Trans Hex to mine two areas within Diamond Fields' Namibian offshore Mining Licence 111, such areas comprising the Marshall Fork feature and the Diaz 12 zone of the Diaz Reef feature. The highlights from the joint venture agreement are:
- Mining operations will commence no later than mid-November 2001 from Trans Hex's first vessel
- Trans Hex's second vessel will commence mining no later than October 31, 2002
- Both Trans Hex supplied vessels will be modern airlift-type diamond-mining vessels, with enhanced visualization technology, associated equipment and processing plants
- Revenues and direct operating costs will be shared 60/40in favour of Diamond Fields until Diamond Fields recovers all of its acquisition, exploration and development costs up to a maximum of U.S.$8.5 million. Thereafter, revenues and costs will be shared equally.
- Joint venture term is seven years
- Expected production from joint venture area (Marshall Fork and Diaz 12 zone) is 675,000 carats (base case) and 1,350,000 carats (inclusive of sampling bias)
- Operating costs are expected to be low, resulting in excellent profitability
Francis J. Waldron, Diamond Fields' Chief Executive Officer, stated that "Diamond Fields and Trans Hex express their sincere appreciation to the Government of Namibia and the Minister of Mines and Energy for demonstrating such positive support for the joint venture and for their approval. We can now look forward to being in operation before year end."
ON BEHALF OF THE BOARD OF DIRECTORS OF
DIAMOND FIELDS INTERNATIONAL LTD.
Francis J. Waldron
Chairman and Chief Executive Officer
For further information contact: (604) 682-2113
Investor Relations: Don Halliday (604) 608-0826
Website - www.diamondfields.com
FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future production and expansion plans of Diamond Fields International Ltd. (DFI), are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from DFI's expectations are disclosed under the heading "Risk Factors", and elsewhere, in DFI's documents filed from time to time with the Toronto Stock Exchange and other regulatory authorities. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and DFI does not undertake any obligation to update forward-looking statements should conditions, or management's estimates or opinions, change.
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