Another possible stream of future cashflow, we hope!?
DiamondWorks enters joint-venture agreement with Magma
DiamondWorks Ltd (2) DMW
Shares issued 52,120,015 Jun 17 close $0.42
Tue 18 Jun 2002 News Release
Mr. J. Scott Drever reports
DIAMONDWORKS JOINT VENTURES KOIDU PROJECT WITH MAGMA DIAMOND ...
DiamondWorks has entered into a joint-venture agreement with Magma Diamond
Resources Ltd. to establish a 50/50 operating joint venture in respect of
DiamondWorks' 60-per-cent interest in the Koidu kimberlite project located
in Sierra Leone.
As reported in Stockwatch on Jan. 28, 2002, DiamondWorks has now completed
its reassessment of the Koidu kimberlite project and has decided to
commence the remobilisation of operations immediately. It is estimated
that, subject to further detailed project planning, the Koidu kimberlites
will require capital and working costs of $6.2-million (U.S.) to achieve
initial commercial production.
Magma is a newly formed company whose sole purpose is equity and debt
participation in diamond mining and exploration projects, and the adding of
value to these participations through the provision of technical and
marketing expertise. The shareholders of Magma are:
BSG Investments, the majority shareholder of Magma. The principal of BSG,
Benny Steinmetz, is an international financier with extensive investments
in diamonds, natural resources, engineering, real estate and high tech in
Europe, North America and Africa;
Bateman, the world's foremost provider of process and recovery expertise
and equipment to the diamond mining industry. Bateman also has extensive
in-house capacity in the preparation of diamond mining feasibility studies
and project financing;
the Steinmetz Diamond Group, one of the world's largest integrated diamond
marketing and trading companies with offices in Antwerp, Tel Aviv,
Johannesburg, New York, Chicago and Mumbai (formerly Bomay); and
Brian Menell, the chief executive officer of Magma who has 14 years of
experience in the diamond marketing, mining and exploration industries,
including eight years with the De Beers Group, and three years as an
executive director of Anglovaal Mining Ltd. Mr. Menell is also a former
chairman of DiamondWorks.
Under the terms of the joint venture, Magma will earn its interest by
paying DiamondWorks $1.2-million (U.S.) in cash to be spent exclusively on
the Koidu project and by procuring by no later than Dec. 31, 2002, a
further $5-million (U.S.) of project financing on reasonable commercial
terms in order to bring the Koidu project to a stage of initial commercial
production. DiamondWorks will act as the operator of the joint venture.
The completion of the joint venture arrangements with Magma is subject to
the fulfilment of certain suspensive conditions, including receipt of
applicable regulatory approvals and completion of Magma's due-diligence
investigation of the Koidu project by July 15, 2002. |
