Key points
- Diamond Fields International Ltd. finalized a definitive agreement granting exclusive diamond marketing rights to Diamond Tenders (Belgium) N.V. (DTB).
- DTB will provide a $2-million (U.S.) unsecured loan bearing 6-per-cent annual interest, repayable from diamond sale proceeds and due in full by Dec. 31, 2003.
- The loan is convertible at the lender’s option into Diamond Fields common shares at 88 U.S. cents per share, equivalent to $1.32 (Canadian) per share.
- DTB, based in Antwerp and controlled by Jean-Raymond Boulle, Diamond Fields’ largest shareholder, gets exclusive marketing rights to diamonds from the Luderitz offshore concessions plus first refusal on other Diamond Fields concessions.
Diamond Fields International Ltd. 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 $2-million (U.S.) unsecured loan from an affiliate of DTB and a 24-per-cent 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 cent per year and will be repayable, from time to time, from proceeds of diamond sales under the marketing agreement, subject to full repayment by Dec. 31, 2003. The loan will also be convertible, at the lender’s option, into common shares of Diamond Fields at a conversion price of 88 U.S. cents per share, equivalent to $1.32 (Canadian) per share.
DTB is a privately owned diamond marketing company based in Antwerp, Belgium, and controlled by Jean-Raymond Boulle. Mr. Boulle is the largest shareholder in Diamond Fields. The marketing arrangement and the loan are subject to regulatory approval.
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.”
