TORONTO (miningweekly.com) – Toronto-listed junior Diamond Fields International (DFI) on Thursday said it had signed a joint venture (JV) option agreement with Afri-Can Marine Minerals Corporation (Afri-Can) to develop the DFI's marine diamond leases in Namibia.
Under terms of the agreement, Afri-Can and its local partner had the option to acquire a 90% interest in DFI's diamond mining leases numbered 111, 138, 139 and 32, located near Luderitz, off the coast of Namibia, in exchange for spending $3.3-million within two years on a programme designed to place the properties back into commercial production.
DFI noted mining lease 111 hosted an historical resource of 950 000 ct of gem-quality diamonds.
To earn the interest, Afri-Can would need to spend a minimum of $800 000 on the mining leases within a year of any required regulatory approval to the transaction and at least an additional $2.5-million within two years of the approval date.
During the option period, Afri-Can would also be liable for all costs associated with maintaining the properties in good standing. DFI would retain a 10% interest in the properties and retain the right to 10% of all diamond production, without any liability for the capital and development costs for a period of two years from the date the option was exercised by Afri-Can.
"The Afri-Can agreement is a positive step forward in restructuring of the company. It further develops the Namibian concessions and allows DFI to focus its resources on advancing other components of its marine portfolio. The agreement provides the company with a realistic opportunity to generate a dependable revenue stream without significant further cash investment,” DFI CEO Ian Ransome said in a statement.
Afri-Can CEO Pierre Léveillé said the agreement dovetailed with its existing EPL 3403 property and offered “very good development potential”.
“We feel that we are sitting on a strong project in a very solid industry."
DFI last week said the Continued Listings Committee of the Toronto Stock Exchange (TSX) had determined to delist the company's securities effective close of market April 12.
The company said it intended to appeal the decision, and to arrange for listing on the TSX Venture Exchange under a streamlined process, subject to the outcome of its appeal to the TSX.