Key points
- ODM holds 20,078 square kilometres of marine diamond concessions off the coasts of Namibia and South Africa.
- ODM has stated probable reserves of 231,000 carats and measured resources of 97,000 carats.
- ODM produced 63,074 carats in the year ended March 31, 1999, using three mining vessels with airlift mining techniques.
- The investment is financed from NAMCO’s cash resources and an agreement to issue about 1.65 million shares, subject to Toronto Stock Exchange approval.
Namibian Minerals has acquired 33.5 per cent of fellow marine diamond producer Ocean
Diamond Mining Holdings Ltd., making it the company’s largest
shareholder.
ODM is engaged in diamond exploration and mining and holds 20,078 square kilometres of marine diamond concessions off the west coasts of Namibia and South Africa.
The company has stated probable reserves of 231,000 carats and measured
resources of 97,000 carats. In the year ended March 31, 1999, it announced
profitable production of 63,074 carats from its Namibian concessions using
three mining vessels with airlift mining techniques. ODM is listed on the
Johannesburg and Namibian stock exchanges.
NAMCO is Namibia’s second largest marine diamond producer and presently
has diamond resources of 2.9 million carats. Using its large-scale dredging
technology, the company is on target to mine 200,000 carats this year. NAMCO’s
second mining system is scheduled to start production in 2000.
NAMCO’s chairman Alastair Holberton said: “This investment further
extends our participation in the world’s largest alluvial gem diamond deposit.
We intend to increase our share of production.”
This investment, at a cost of approximately $17-million (U.S.), has been financed from the company’s cash resources and through agreement to
issue approximately 1.65 million shares. The issuance of shares is subject to
approval by the Toronto Stock Exchange.
NAMCO recently announced first quarter earnings of $5.2-million (U.S.) or
14 U.S. cents per share. The company paid its first dividend of two U.S. cents per share in
June, 1999.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
