Key points
- The mv DF Discoverer’s refurbishment is complete and the vessel will depart Cape Town this week to resume mining in licence 111 offshore Luderitz, Namibia.
- Diamond Fields will conduct a non-brokered private placement of $2-million led by Jean-Raymond Boulle, the company’s founding and largest shareholder.
- The placement consists of eight million units at 25 cents each, with each unit including one common share and one-half of a warrant exercisable at 40 cents for three years.
- The company has an oversubscription option of 25 per cent, or $500,000, and closing is subject to regulatory acceptance.
Diamond Fields International Ltd. (DFI) has provided an update on the following matters.
1. Refurbishment of DFI’s mining vessel (mv) DF Discoverer is now complete and it is expected that the vessel will depart this week from Cape Town, South Africa, to resume mining operations as soon as possible in mining licence 111, located offshore Luderitz, Namibia. The vessel was moved to Cape Town for extensive refurbishment to improve its mining and operating efficiencies.
2. In order to provide necessary working capital to launch the mv DF Discoverer, DFI has agreed to carry out a non-brokered private placement of $2-million, which will be led by Jean-Raymond Boulle, the company’s founding and largest shareholder. The private placement will consist of eight million units, at 25 cents per unit, with each unit to consist of one common share and one-half of a share purchase warrant, exercisable for a period of three years at 40 cents per share. If the average trading price of DFI’s shares is $1.20 or greater during any 20 consecutive trading days after 18 months from the closing of the private placement, the company shall have the option of giving notice to the warrantholders that the warrants must be exercised within 20 business days or they will expire. Closing of the private placement is subject to all necessary regulatory acceptances. The company will have at its option an oversubscription right of 25 per cent of the offering ($500,000). The investors in this private placement will consist of both arm’s-length and non-arm’s-length investors.
Gregg Sedun, president and chief executive officer of Diamond Fields, stated: “Resuming diamond production with our own ship mv DF Discoverer is a very significant event in Diamond Fields’ history as, for the first time, we will have the ability to control our diamond production and exploration activities and avoid reliance on contractor vessels. This new financing will provide the minimum working capital required to initiate ship operations, while minimizing shareholder dilution at our current stock price.”
