Canada-based Diamond Fields International (DFI) entered into a joint venture agreement with Afri-Can Marine Minerals to develop the former’s marine diamond leases in Namibia.
As per the agreed terms, Afri-Can can acquire a 90% stake in DFI’s four diamond mining eases located off the coast of Namibia through an investment of $3.3m in the next two years.
The company can invest the amount in two tranches with initial $800,000 to be paid within first year of transaction approval, while remaining $2.5m has to be invested within two years of date of approval.
DFI president and CEO Ian Ransome remarked that the venture with Afri-Can is a part of company’s restructuring plan.
"It further develops the Namibian concessions and allows DFI to focus its resources on advancing other components of its marine portfolio.
"The agreement provides the Company with a realistic opportunity to generate a dependable revenue stream without significant further cash investment," elaborated Ransome.
Afri-Can president and CEO Pierre Léveillé added, " The DFI portfolio of Mining Leases complements EPL 3403 and offers very good development potential. It will enable us to get a resource base and then start production. We feel that we are sitting on a strong project in a very solid industry."
DFI meanwhile will retain a 10% interest in the properties alongside 10% of all the diamond production without any investment liabilities for two years.