Diamond Fields International Ltd. is providing this update to its shareholders and the general public.
Atlantis II Red Sea project:
The company previously announced it was in a dispute with Manafa International Commerce Company regarding the Atlantis II Red Sea project (see DFI press release dated Jan. 30, 2014). Since that time, the company’s focus and efforts have shifted from seeking arbitration with Manafa to discussions with government. The company has received preliminary indications that such discussions may be possible and is pursuing that potential opportunity. The process is at an early stage, and there is no certainty as to whether they will occur or, if so, what the result will be.
The company continues to assert its rights to the project.
In addition to its initiative for governmental discussions, the company is continuing its relationship with GEOMAR Helmholtz Centre for Ocean Research of Kiel, Germany. GEOMAR is one of the world’s premier institutes for marine sciences. The company’s work with GEOMAR on the Atlantis II Red Sea deposit dates back several years (see for example the company’s press release dated Feb. 14, 2011).
The company is also considering retaining TECNIP to assist the company on the project and is in discussions with TECNIP. TECNIP is a world leader in marine oil and gas project support. DFI believes TECNIP’s vast experience in deep-sea oil and gas projects complements DFI’s experience as one of only a handful of mining companies to successfully conduct offshore marine mining.
South Africa — phosphates
The company’s South African operator and subsidiary, Diamond Fields (South Africa) Pty. Ltd., is in negotiations with the Department of Mineral Resources, South Africa, to redelineate prospecting block sizes in the Outeniqua East and West concessions, respectively. Further progress on the project is subject to environmental studies being conducted by the government.
Madagascar — Valazoro
The company is maintaining the nickel deposit while commodity prices are suppressed. It will regularly review the project to consider further development as conditions warrant.
Namibia — Luderitz offshore diamonds
DFI continues its joint venture with International Mining and Dredging Holding Pty. Ltd. (see DFI initial press release dated June 5, 2015). On June 23, 2016, the Namibian Competition Commission approved the joint venture without conditions. IMDH has completed the surveying and sampling stages I and II to DFI’s satisfaction, and, pursuant to the JV agreement, earned a 50-per-cent shareholding in the JV company. The joint venture is conducting the stage III bulk sampling program with a focus on the ML-111 concession (see DFI press release dated July 12, 2016). The joint venture is also considering various programs for possible further development of concession ML-32.
Diamond Tenders Belgium
DFI is in discussions with members of DTB to terminate the company’s arrangement for the sale of the company’s diamonds through DTB. Those discussions are continuing, and no agreement has been reached and may not be reached.
Potential additional property
DFI continues to evaluate new projects and is currently investigating several new investment opportunities, including a zircon play in Madagascar.
Sybrand van der Spuy commented, “DFI is excited about the opportunities in hand, and also with the trust and support shown by its controlling shareholder, Spirit Resources SARL (Jean-Raymond Boulle), allowing DFI to engage on a new, dynamic and future-looking operational future.”
