Diamond Fields Announces Amendment to Agreement to Advance Beravina Project
VANCOUVER, June 26, 2020 - 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 |
| 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.
Contact
Sybrand van der Spuy, CEO and Director, Contact: +27 78 4558700; Michael Oke/Andy Mills: +44 20 7321 0000, Aura Financial LLP: www.aura-financial.com