Diamond Fields International has successfully settled its outstanding lawsuit with Trans Hex Group Limited of South Africa involving their joint venture agreement covering certain portions of Diamond Fields International’s sea diamond concessions near Luderitz, Namibia. Under the terms of the settlement, Diamond Fields International will receive a total benefit of approximately $800,000 ($500,000 (U.S.)) of which approximately $480,000 ($300,000 (U.S.)) in cash will be paid by Trans Hex to Diamond Fields International as payment of all penalties due by Trans Hex to Diamond Fields International under the agreement. The balance of $320,000 ($200,000 (U.S.)) represents forgiveness of debt for past diamond sales due to Trans Hex from Diamond Fields International. As well, the agreement will be of no further force and effect, and neither party shall have the right to make any further claims against the other relating to the agreement. Trans Hex and Diamond Fields International have agreed to explore a possible new working relationship in regard to their respective interests in marine diamond mining.
Diamond Fields International is also pleased to announce that it has reached an agreement with MIL Investments SARL (MIL), a company beneficially owned by Jean-Raymond Boulle, the chairman, chief executive officer and controlling shareholder of Diamond Fields International, whereby MIL will reinstate its promissory note in the principal amount of $2-million (U.S.) owed by Diamond Fields International to MIL. As a result of this reinstatement, the remaining principal plus all accrued and unpaid interest will not be due until Dec. 31, 2003, unless certain conditions occur, including a change of control of Diamond Fields International or the incurrence of additional debt by Diamond Fields International without the prior consent of MIL.
The settlement with Trans Hex will result in Diamond Fields International once again enjoying 100 per cent of all revenues derived from all of its Luderitz concessions subject only to any amounts Diamond Fields International agrees to pay its mining contractors.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
