Diamond Fields Resources Inc. has announced plans to sell its Namibian diamond assets to Jean Boulle Diamond Mines Ltd.
The firm said the sale move is set to enable DFR to focus on the development of its portfolio of West African gold exploration and development projects following the acquisition of Moydow Holdings Limited (“Moydow”).
As consideration for the sale of the Namibian Concessions, DFR is entitled to receive initial cash consideration in the amount of US$150,000, annual cash payments in the amount of US$100,000, and a 1% royalty of net sales from the Namibian Concessions, after allowing for selling related costs.
Concessions
The Namibian Concessions comprise two deep water licenses (ML 111 and ML 139) that are 100% owned by DFR’s subsidiary Diamond Fields (Namibia) (Pty) Limited, as well as, a shallow water license (ML 32), owned by Namibian Diamond Company (Pty) Limited, a 70% owned subsidiary of DFR (each of the foregoing licenses, a “License”).
JBDM is controlled by Jean-Raymond Boulle who, through Spirit Resources SARL, owns a 39.1% interest in DFR. The Annual Payment (as to $90,000 for ML111, $5,000 each for ML139 and ML32) will cover the period beginning on September 1, 2023 and end upon the earlier of: (i) JBDM no longer holding the relevant License or (ii) September 1, 2035.
John McGloin, CEO of DFR, commented: “Since completing the acquisition of Moydow we have identified the optimal strategic path for creating value from DFR’s portfolio. The sale of DFR’s diamond assets will enable us to focus on the development of our portfolio of attractive gold growth options whilst ensuring that DFR shareholders retain a share in any future diamond production. Recent progress at our Cascades Gold Project is encouraging and demonstrates the significant potential to expand the already reported mineral resource estimate.”
