Diamond Fields International and Trans Hex Group have entered into a joint venture agreement to mine diamonds from two areas within Diamond Fields’ mining licence 111, offshore Luderitz, Namibia. This agreement will enable Diamond Fields to become a marine diamond producer before the end of the year without incurring financial debt or shareholder dilution and significantly enhances Trans Hex’s mid-water marine opportunities.
Diamond Fields, through its wholly owned Namibian subsidiary, will make available to the joint venture the exclusive rights to mine two areas of its offshore Namibian mining licence 111, such areas comprising the Marshall Fork feature and the Diaz 12 zone of the Diaz Reef feature (the joint venture area). This area represents less than 0.6 per cent of the total area of ML 111. The initial term of the joint venture is seven years, renewable annually thereafter by mutual agreement. Trans Hex, through a wholly owned Namibian subsidiary, will be the operator of the joint venture and will contribute two modern airlift-type diamond-mining vessels, with enhanced visualization technology and associated equipment, processing plants, and offshore diamond mining expertise.
The first Trans Hex supplied vessel is to commence operations no later than eight months following receipt of all applicable approvals for the joint venture from the government of Namibia. The second vessel will be deployed no later than Oct. 31, 2002.
Diamond Fields will be responsible for the marketing of diamond production from the joint venture. However, Diamond Fields will develop its marketing strategies and procedures in consultation with Trans Hex.
Francis J. Waldron, Diamond Fields’ chief executive officer, states: “This joint venture agreement positions the company to move quickly into the operating phase and by the end of the year, we expect to receive positive cash flows. These will further strengthen the company’s sound financial position, and allow us to continue defining and expanding our resources in the company’s Namibian concessions.”
“Trans Hex is an excellent choice for a joint venture partner as it has a strong balance sheet and has proven itself as a successful diamond mining operator. We were particularly attracted to Trans Hex’s balance between technology, cost efficiencies and profitability. We look forward to working with Trans Hex.”
In addition to its core on-land diamond mining activities, Trans Hex has been involved in marine mining for more than 20 years — mainly in the shallow-water (less than 30 metres) zones. A year ago, the appointment of the experienced Andre Louw to head up the marine division signalled a renewed commitment to expanding offshore operations. Mr. Louw, previously as MD of Ocean Diamond Mining, has a long and profitable marine mining track record in Namibian waters.
Trans Hex acquired a number of mid-water marine concessions last year as part of its merger with Benco, and plans to develop these into mining areas are under way.
The joint venture opportunity with Diamond Fields has accelerated Trans Hex’s mid-water plans because of the highly attractive geological features and diamond mineralization surveyed, sampled, and trial-mined by Diamond Fields.
Peter Danchin, Trans Hex’s managing director, operations, explains: “The Marshall Fork feature is a delineated orebody, the lateral continuation of which previously produced outstanding results from mining activities. We are thrilled to commence our mid-water operations in this well-known zone.”
Diamond Fields and Trans Hex extend their sincere appreciation to the Minister of Mines and Energy, Jesaya Nyamu, and his staff for their continued support.
The joint venture agreement is subject to all regulatory approvals, including all applicable approvals from the government of Namibia.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
