Diamond Fields International Ltd. (the “Company”) has filed its second quarter report on SEDAR for the period ending December 31, 2002.
Significant financial results are as follows. The loss for the quarter ended December 31, 2002 was $593,958 as compared to a loss of $227,096 for the same quarter last year. General and administrative expenses of the period were $1,010,148 compared with $390,611 for the same period of the previous year. The increase was the result of legal and consulting expenses associated with a proxy contest that took place in November 2002.
In November 2002, as a result of the above-mentioned proxy contest, a new Board of Directors was elected, receiving the support of 67% of the votes cast at the meeting. In December 2002, the Company’s newly constituted Board of Directors successfully settled a lawsuit with Trans Hex Group Limited, which had disrupted the Company’s diamond production on July 1, 2002. As a result of the settlement, the Company recognized a gain of $478,180 during the quarter.
In December 2002, the Company recovered $30,609 from a $122,500 deposit put forward by the previous management towards the acquisition of a new vessel, which after conversion to a mining vessel, would have had a proposed final cost of approximately $10 million. The new Board felt that it was not in the Company’s best interests at that time to proceed with the purchase and to incur significant debt for the conversion of the vessel. The net result was a forfeiture of $91,891.
As a result of the proxy contest, the Company did not have sufficient financial resources readily available to recommence mining operations on its Luderitz concession. However, a short-term loan of $310,000 provided by Jean Boulle, through his company, MIL Investments (S.A.R.L.), enabled the Company to reinitiate the mining of its Luderitz concession in December 2002 utilizing a mining contractor, Gemfarm Investments (Pty) Ltd. As previously disclosed, the Company has been pleased with the results of the production to date.
Diamond Fields shares are listed on the Toronto Stock Exchange under the symbol “DFI”.
DIAMOND FIELDS INTERNATIONAL, LTD.
Chairman and Chief Executive Officer
For further information contact: Earl Young (1-214-219-1439)