VANCOUVER, BC, June 26, 2020 /CNW/ - Diamond Fields
Resources Inc. (TSXV: DFR) ("DFR" or,
including its subsidiaries, the "Company") is pleased to announce
that it has amended its cooperation agreement dated May 16, 2019 ("the Amended Agreement") with TMH
Acquisition Co ("TMH"), a special purpose vehicle established by
Denham Mining Fund LP, to advance the Company's Beravina project in
Madagascar ("Beravina" or "the
Project").
The Amended Agreement requires DFR to undertake the next phase
of work, which involves a high-resolution magnetic drone survey,
the development of digital elevation models and limited groundwork
("Phase 1") with the aim of locating potential new mineral deposits
and extensions to the existing deposit. If successful, the Company
will then engage in a drilling campaign on the Project ("Phase 2")
to be completed by 30 November 2020.
DFR has committed to spend between US$250,000 and US$350,000 in connection with such activities,
subject to ongoing positive results. If DFR has not completed
Phase 1 and commenced Phase 2 by 30
September 2020 (unless extended by DFR in certain
circumstances), the Amended Agreement will terminate.
The Amended Agreement extends the time available for TMH to
exercise its option to acquire the Project in light of this new
work program. Pursuant to the Amended Agreement, TMH will have
until 31 December 2020 to continue to
exercise its option to acquire the Beravina project, which may be
extended by three (3) months through an advance payment (on the
Option exercise price) of US$250,000.
As previously communicated, TMH has the option ("the Option") to
acquire 100% of the Project in consideration of:
A.
|
a net payment of
US$2,200,000; and
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B.
|
a nine percent
(9%) sales royalty;
|
but pursuant to the Amended Agreement it must also reimburse DFR
for the amount for expenditures incurred by DFR in connection with
this new Phase 1 and Phase 2 work.
The remaining terms of the Amended Agreement remain the same as
those disclosed by DFR in its press release dated 16 May 2019.
As per DFR's last announcement of 29 May
2020, the results on the Beravina deposit drill programme
executed by TMH, totalling to 13 diamond core drill holes and
aggregating 906.16 metres of drilling, will be announced by DFR
shortly.
About Beravina
The Beravina Project is a hard rock zircon deposit with a NI
43-101 Inferred Mineral Resource estimate of 1.5 million tons at
22.7% zircon (ZrSiO4) equivalent to 15.3% ZrO2, See the NI 43-101
Technical Report, with an effective date of 14 December 2018 and filed on the Company's SEDAR
profile on 29 January 2019, written
by MSA Group (Pty) Ltd. (Michael S. Cronwright, Pr.Sci.Nat., FGSSA,
John Derbyshire, Pr.Eng., FSAIMM,
Jeremy Witley, Pr.SCI.Nat., FGSSA
and Andre van der Merwe,
Pr.Sci.Nat., MAusIMM, FGSSA), each of whom is a "qualified person"
for purposes of NI 43-101, and independent of the Company as
defined in NI 43-101. The Project, which covers 625 hectares, is
located in Western Madagascar. Results so far show that,
utilizing industry standard beneficiation technologies, zircon can
be concentrated to levels of between 50% ZrO2 and 58% ZrO2 with
varying levels of thorium ingrained.
Notes to Editors:
DFR is a TSX Venture Exchange listed exploration and mine
development company with assets in Madagascar and Namibia. In Madagascar, DFR is developing the Beravina
Project, an advanced high grade hard rock zircon exploration
prospect located in the west of the country, approximately 220km
east of the port of Maintirano and near a state road. DFR acquired
Beravina from Pala Investments and Austral Resources in 2016. In
Namibia, International Mining and
Dredging Holdings (Pty) Limited is undertaking an initial six month
(non-continuous) offshore diamond mining program on DFR's ML 111
licence area. The ML 111 concession has a ten year mining licence,
effective until 4 December 2025, and
lies within Luderitz Bay between Diaz Point in the south and
Marshall Rocks in the north and at
depths of 15 to 70 metres.
Website: www.diamondfields.com
The Company's public documents may be accessed
at www.sedar.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements:
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors identified in the Company's periodic filings with Canadian
Securities Regulators. Such forward-looking information represents
management's best judgment based on information currently
available. No forward-looking statement can be guaranteed and
actual future results may vary materially. The Company does not
assume the obligation to update any forward-looking statement,
except as otherwise required by law.
SOURCE Diamond Fields Resources Inc.