Key points
- The joint venture covers the Marshall Fork feature and the Diaz 12 zone of the Diaz Reef feature within Diamond Fields’ Namibian offshore mining licence 111.
- Trans Hex’s first vessel will begin mining no later than mid-November 2001, with a second vessel starting no later than Oct. 31, 2002.
- Revenues and direct operating costs will be split 60/40 in Diamond Fields’ favour until it recovers up to $8.5-million (U.S.) in costs, after which the split becomes equal, over a seven-year joint venture term.
- Expected production from the joint venture area is 675,000 carats in the base case and 1.35 million carats including sampling bias.
Diamond Fields International has received formal approval from the Namibian Minister of Mines and Energy for the joint venture agreement between DFI and Trans Hex Group Limited (TSX-JSE/NSX).
As reported on March 6, 2001, Diamond Fields, through its wholly owned Namibian subsidiary, has entered into a joint venture agreement with Trans Hex to mine two areas within Diamond Fields’ Namibian offshore mining licence 111, such areas comprising the Marshall Fork feature and the Diaz 12 zone of the Diaz Reef feature. The highlights from the joint venture agreement are:
mining operations will commence no later than mid-November, 2001, from Trans Hex’s first vessel;
Trans Hex’s second vessel will commence mining no later than Oct. 31, 2002;
both Trans Hex-supplied vessels will be modern airlift-type diamond-mining vessels, with enhanced visualization technology, associated equipment and processing plants;
Revenues and direct operating costs will be shared 60/40 in favour of Diamond Fields until Diamond Fields recovers all of its acquisition, exploration and development costs up to a maximum of $8.5-million (U.S.) and, thereafter, revenues and costs will be shared equally;
joint venture term is seven years;
expected production from joint venture area (Marshall Fork and Diaz 12 zone) is 675,000 carats (base case) and 1.35 million carats (inclusive of sampling bias); and
operating costs are expected to be low, resulting in excellent profitability.
Francis J. Waldron, Diamond Fields’ chief executive officer, stated that: “Diamond Fields and Trans Hex express their sincere appreciation to the Government of Namibia and the Minister of Mines and Energy for demonstrating such positive support for the joint venture and for their approval. We can now look forward to being in operation before year-end.”
WARNING: The company relies upon litigation protection for “forward-looking” statements.
