' DiamondWorks signs MOU for Malawi fuel supply system
DiamondWorks Ltd (2) DMW
Shares issued 59,689,465 Apr 22 2003 close $ 1.60
Wednesday April 23 2003
News Release
Mr. J. Scott Drever reports
DIAMONDWORKS LTD. ANNOUNCES MOU WITH MALAWI FOR
INFRASTRUCTURE AND SUPPLY OF PETROLEUM PRODUCTS
DiamondWorks' wholly owned subsidiary, Petroplus Africa, has entered into a memorandum of understanding (MOU) to seek out financing and arrange for the construction of an oil pipeline and ancillary storage facilities (the projects) in the Republic of Malawi. Upon obtaining initial financing commitments for the projects, Petroplus shall be appointed to arrange and provide, fuel supplies, and petroleum products to Malawi. The MOU was entered into by Petroplus with the Ministry of Natural Resources and Environmental Affairs of the government of the Republic of Malawi.
The MOU grants Petroplus the exclusive right, for a period of six months from the effective date, to carry out the due diligence necessary to arrange financing for the construction of approximately 400 kilometres of pipeline from Nacala, an East African port located in Mozambique, to Liwonde, a city located in Malawi between the two principal cities of Blantyre and Lilongwe. The storage facilities are to be of sufficient capacity for at least two months feedstock requirements for Malawi or in total approximately 60,000 tonnes of refined oil products. In the event a financing commitment is secured by Petroplus during the initial six-month period, the MOU will be automatically extended for an indefinite period. The MOU may be terminated upon 30 days notice, subject to certain conditions related to reimbursement of expenses.
Petroplus will work closely on the due diligence and financing proposal with Petroplus International Marketing FZCO (Petroplus International), a wholly owned subsidiary of Petroleum International N.V., one of Europe's leading mid-stream oil companies and tank storage operators publicly listed in the Netherlands. Petroplus International is responsible for the procurement and financing of crude oil, and certain refined products on behalf of DiamondWorks, and is also the supplier of petroleum products to Otterbea International under its Zambian crude oil contract. Discussions with various financing institutions are relatively advanced and the company has received positive initial reactions from ABSA Bank and other potential financiers.
The company views this arrangement with the government of Malawi as a significant milestone in applying the strategic advantages developed in its Zambian supply contract to leverage the company's position as a financier, and provider of infrastructure and related commodities for the nations of Africa.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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