Denham to support Diamond Fields’ Madagascar zircon project
TSX-V-listed Diamond Fields Resources (DFR) on Thursday unveiled a cooperation agreement with private equity firm Denham Capital’s Denham Mining Fund, which also includes an option agreement that could see the junior being carried to production at the Beravina zircon project, in Madagascar.
Denham Mining Fund’s TMH Acquisition would make an immediate payment of $250 000 to DFR and would fund the project’s 2019 work programme, which would entail $500 000 over seven months.
Once completed, TMH would have the option to acquire 100% of the project for $2-million and a 9% sales royalty. If exercised, TMH would incur all future capital and operating expenditures, while DFR would benefit in perpetuity from its right to 9% of all future mineral sales.
TMH would have to place the project into production by no later than June 30, 2023.
"We are pleased to have secured the cooperation of such a strong financial and technical partner for Beravina. We have confidence that the 2019 work programme will meet expectations and confirm the technical merits of the project. If the option is exercised, DFR will be in the enviable position of being carried through to production at no cost whilst retaining a very substantial economic stake in future sales revenue from Beravina,” said CEO Sybrand van der Spuy.
DFR’s share price fell by 10.5% on Thursday to C$0.26 a share.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation