News..lots to digest.
Diamond Fields eliminates royalty obligations
VANCOUVER, Apr 29, 2005 (Canada NewsWire via COMTEX) --
Diamond Fields International Ltd. (TSX:DFI) is pleased to announce that it has reached agreements with Jean-Raymond Boulle, and companies controlled by Mr. Boulle, for the cancellation of all of its outstanding royalty obligations held by a company controlled by Mr. Boulle. This transaction will facilitate DFI's efforts to secure a joint-venture partner for its Greenland nickel project.
Pursuant to an agreement dated April 27, 2005 among DFI, Mr. Boulle and companies controlled by Mr. Boulle, the parties have agreed that all outstanding gross overriding royalties granted to a company controlled by Mr. Boulle in respect of proceeds received from production in Madagascar, Sierra Leone, Angola, the Democratic Republic of the Congo, Russia, Algeria, and certain areas of Greenland will be eliminated in consideration for the payment to Mr. Boulle, directly or indirectly, of an aggregate of 1,700,000 common shares of DFI.
DFI has also decided to discontinue its diamond exploration programs in Sierra Leone and Madagascar, which it acquired from Mr. Boulle and companies controlled by Mr. Boulle. Consistent with the terms of the acquisition agreement announced on July 31, 2003, DFI will return its remaining exploration interests in Sierra Leone along with related assets including diamond laboratories in Sierra Leone and Madagascar and two diamonds. In the quarter ended September 30, 2004, DFI recorded a provision for impairment of US$796,791 against the value of its Sierra Leone and Madagascar exploration properties.
President and CEO of Diamond Fields, Mr. Gregg J. Sedun said, "Under previous agreements with Mr. Boulle, DFI was able to acquire an international portfolio of exploration projects at no up-front cost other than the royalties. Eliminating these royalties now is necessary to complete a joint venture on our nickel properties in Greenland and possibly in Madagascar, and also removes a barrier to future exploration across a wide area of Africa."
The transactions are subject to all necessary regulatory approvals and the acceptance of the Toronto Stock Exchange. By virtue of his share ownership in DFI, Mr. Boulle is an insider of the Company. DFI has arranged for an independent valuation of the royalties to be eliminated in consideration for the DFI shares as described above. The transactions may close before twenty-one days following the filing of the material change report respecting this announcement, if management determines it is necessary or desirable for sound business reasons.
DFI also announces that, based on results to date, it has decided not to pursue further exploration on its Ogna nickel project in Norway and has disposed of the property.
Diamond Fields International Ltd. is a marine diamond producer with a superior portfolio of mineral exploration properties in several areas of the world. Diamond Fields' corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international mineral exploration projects. In addition, the Company continues to evaluate opportunities to acquire new economic mineral projects worldwide.
DIAMOND FIELDS INTERNATIONAL LTD. "Gregg J. Sedun" Gregg J. Sedun, President and Chief Executive Officer All dollar values are stated in U.S. currency unless otherwise specified. Forward-Looking Statements:
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Diamond Fields' period filings with Canadian Securities Regulators. Such forward-looking information represents managements' best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Diamond Fields does not assume the obligation to update any forward-looking statement.
Investor Relations, 1-888-682-2113, extension 257, Website: www.diamondfields.com
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