March 21, 2013
/PRNewswire/ - Diamond Fields International Ltd. (DFI:TSX) is pleased to announce that it has signed a joint venture option agreement with Afri-Can Marine Minerals Corporation ("Afri-Can") to further develop the DFI's marine diamond leases in
(the "Agreement"). Under the Agreement, Afri-Can and its local partner have the option to acquire a 90% interest in DFI's diamond Mining Leases numbered 111, 138, 139 and 32 located off the coast of
in exchange for spending
within 2 years on a program designed to place the properties back into commercial production. Mining Lease ("ML") 111 hosts an historical resource of 950,000 carats of gem quality diamonds.
To earn the interest, Afri-Can must spend at least
on the Mining Leases within one year of any required regulatory approval to the transaction (the "Approval Date"), and at least an additional
within 2 years of the Approval Date (the "Option Period"). During the Option Period, Afri-Can will also be liable for all costs associated with maintaining the properties in good standing. DFI will retain a 10% interest in the properties and, importantly, will retain the right to 10% of all diamond production, without any liability for the capital and development costs for a period of two years from the date the option has been exercised by Afri-Can.
Ian Ransome CEO and President of
, stated that, "The Afri-Can agreement is a positive step forward in restructuring of the Company. 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."
Pierre Léveillé, President and CEO of Afri-Can, stated that, "We are very pleased with this agreement. 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."