Diamond Fields International has filed its second quarter financial report on SEDAR for the period ending Dec. 31, 2002.
Significant financial results are as follows. The loss for the quarter ended Dec. 31, 2002, was $593,958, as compared with 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 per cent 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 toward 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, using a mining contractor, Gemfarm Investments (Pty.) Ltd. As previously disclosed, the company has been pleased with the results of the production to date.
