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Gold/Mining/Energy : DIAMONDWORKS DMW.v -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (389)	7/17/2002 4:51:45 PM
From: marcos	Respond to of 413

' DiamondWorks' Trans Sahara supplies crude oil to Zambia DiamondWorks Ltd (2) DMW Shares issued 52,120,015 Jul 16 2002 close $ 0.45 Tuesday July 16 2002 News Release Mr. J. Scott Drever reports DIAMONDWORKS LTD. ANNOUNCES FIRST FLOW OF FUNDS FROM ZAMBIAN ... Trans Sahara Trading Ltd. (TST), a wholly owned subsidiary of Otterbea International (Proprietary) Ltd., has completed the loading of the first 90,000 metric tonnes of crude oil under its exclusive contract to supply petroleum to Zambia. DiamondWorks recently acquired an 80.1-per-cent interest in Otterbea. This phase of the contract represents a turnover of approximately $21-million (U.S.), for which TST will receive net commissions and management fees of $2.9-million (U.S.). TST has received an advance of $2-million (U.S.) from ABSA Bank Ltd., a major South African bank, against the final settlement amount. Management of TST anticipates transactions of similar size to occur approximately every 60 days. The role of TST under the contract with Zambia is to manage the importation, refinement and selling of petroleum products in Zambia. In connection with this mandate, TST has secured a one-year $65-million (U.S.) revolving crude oil import credit facility from ABSA. The ABSA credit facility may be used for the supply of crude feedstock to the Tazama Pipelines terminal at Dar es Salaam in Tanzania, the transport to the Indeni refinery at Ndola in Zambia, the refining at Indeni, and the storage and sales of refined petroleum products from the Zambian National Oil Company terminal. The credit facility has been put in place in conjunction with Zambian National Commercial Bank (ZANACO) and Standard Chartered Bank of Zambia (Standard). The ABSA credit facility may be used up to eight times per year, for total annual availability of about $425-million (U.S.). Management of TST is of the view that the model for the Zambian crude oil contract is applicable to other African nations and is pursuing these potential opportunities for additional contracts. Otterbea International (Proprietary) Ltd., the parent company of TST, is owned 80.1 per cent by DiamondWorks and specializes in procurement and logistics into the African continent. Through a series of subsidiaries, Otterbea operates in 14 African countries and has representative offices in Europe. Since 1960, Otterbea has traded as a principal and, through a substantial infrastructure throughout sub-Sahara Africa, provides comprehensive services to the mining industry, including transportation, warehousing, procurement, sales and distribution of essential equipment, and supplies. (c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com '