Diamond Fields International Ltd. (DFI-TSE), is pleased to announce that it has finalized the terms of a definitive agreement to grant exclusive diamond marketing rights to Diamond Tenders (Belgium) N.V. (“DTB”). In return, Diamond Fields will receive a US$2.0 million unsecured loan from an affiliate of DTB and a 24% equity stake in DTB.
The marketing arrangement, agreed in principle in the fourth quarter of 2000 subject to definitive documentation, gives DTB the exclusive right to market and sell all diamonds mined from Diamond Fields’ Luderitz offshore diamond concessions. DTB also has a first right of refusal to market and sell diamonds from any other diamond concessions owned by Diamond Fields. The loan will bear interest at 6% per annum and will be repayable, from time to time, from proceeds of diamond sales under the marketing agreement, subject to full repayment by December 31, 2003. The loan will also be convertible, at the lender’s option, into common shares of Diamond Fields at a conversion price of US$0.88 per share, equivalent to Cdn.$1.32 per share.
DTB is a privately owned diamond marketing company based in Antwerp, Belgium and controlled by Mr. Jean-Raymond Boulle. Mr. Boulle is the largest shareholder in Diamond Fields. The marketing arrangement and the loan are subject to regulatory approval.
Mr. H.D. Lee, Chief Financial Officer states that, “This arrangement represents a real vote of confidence for the Company. We look forward to participating in the diamond distribution process and adding a new stream of revenues for Diamond Fields.”
ON BEHALF OF THE BOARD OF DIRECTORS OF
DIAMOND FIELDS INTERNATIONAL LTD.
Chief Financial 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.