In case you missed this Fixer
TORONTO, ONTARIO--Rex Diamond Mining Corporation announced today
that it has completed a $US3.0 million debt financing with
European investors. The financing consists of a non-interest
bearing convertible note for $US2.0 million maturing on June 1,
1999 and convertible into two million Rex shares at $US 1.00 per
share. In addition a non-interest bearing loan of $US1.0 million
payable on December 15, 1998 has been completed on account of
future rough diamond purchases with a local industry group, for
which Rex has granted the right of first refusal for all diamond
production in sizes of less than 1.80 carats. Proceeds of the
loans will be used to repay a maturing debenture of $US3.0 million
which had right of first refusal on the entire diamond production.
Rex will now be able to optimize its return on the marketing of
large stones (+1.80 carats), representing more than 2/3 of its
production and very much in demand in the current diamond market.
South Africa
The focus in the first six months of 1998 was the reduction of
total cash costs at the South African mines. The effort to
restructure operations and workforce at the South African mines is
nearing completion. Increased efficiency and the 50 percent
consolidation of the workforce has been achieved without
significantly affecting production levels and has substantially
reduced the net burn rate of the company. The reduction in
manpower levels was offset by a continuous training (to
multi-function) and upgrading of the workforce combined with the
introduction of new mining practices (long-hole stoping) and the
establishment of central technical services. In the next six
months emphasis will be given to upgrade and mechanize equipment,
to open up greater areas of Rex's existing ore reserves and to the
establishment of an exploration unit at the South African mines in
order to further develop new reserves. The resulting increased
production is expected to achieve for Rex a zero net burn rate and
a positive contribution towards general expenses of the company.
Mauritania
The first group of pyrope-rich depressions, identified at the end
of April for trenching, were found to be underlain by a 1 km wide
and at least 8 km long alluvial gravel layer, roughly 1 m thick,
and covered by 2 m of overburden. This gravel, rich in kimberlite
pyropes, is now being sampled up-stream with a view to locating
the kimberlite source rock. In coming months Rex plans to
mobilize a jig plant for testing the diamond content of the
alluvial gravel layer.
The regional sampling in the 72,000 km(2) exploration permits is
progressing according to plan and should be completed by April
1999.
Sierra Leone
The situation is gradually improving and the government has
confirmed Rex's mining concession in Tongo Fields and Zimmi. Rex
is currently evaluating the possibility of an early resumption of
mining activities after the rainy season (Nov. 1998).
Rex Diamond Mining Corporation is a fully integrated group of
diamond operating companies ranging from exploration through to
mining and marketing of high-quality gem diamonds. The Company
has operating subsidiaries in South Africa, Sierra Leone,
Mauritania, Liberia and Antwerp, Belgium.
Serge Muller
President and CEO
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FOR FURTHER INFORMATION PLEASE CONTACT:
Rex Diamond Mining Corporation
Ben Holemans, Antwerp
+(32)3-205-9060
Website: www.rexmining.com
E-mail: Info@rexmining.be
or
Rex Diamond Mining Corporation
Ross Orr, Toronto
+ (1)416-955-9033
Website: www.rexmining.com
E-mail: Info@rexmining.b |
