TSX Venture Exchange-listed exploration and mine development company Diamond Fields Resources has agreed to sell its Namibian diamond assets to Jean Boulle Diamond Mines.
This was after the two companies signed a diamond business sale agreement on 28 November 2022.
As part of the sale agreement for the Namibian concessions, Diamond Fields will receive an initial cash consideration of N$2.5 million (US$150,000), annual cash payments in the amount of N$1.7 million (US$100,000) and a 1% royalty on net sales from the Namibian concessions, after allowing for selling related costs.
The sale, which is subject to approval by the TSX Venture Exchange, will enable Diamond Fields to focus on the development of its portfolio of West African gold exploration and development projects following the acquisition of Moydow Holdings Ltd.
The Namibian concessions comprise two deepwater licences (ML 111 and ML 139) that are 100% owned by Diamond Fields’ subsidiary, Diamond Fields (Namibia) Pty. Ltd., as well as a shallow water licence (ML 32), owned by Namibian Diamond Company Pty. Ltd., a 70-per-cent owned subsidiary of Diamond Fields.
JBDM is controlled by Jean-Raymond Boulle, who, through Spirit Resources SARL, owns a 39.1% interest in Diamond Fields.
“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,” John McGloin, Chief Executive Officer of Diamond Fields said.
Following the acquisition of Moydow Holdings, Diamond Fields holds interests in a portfolio of West African gold exploration projects, including the highly prospective Cascades gold project in Burkina Faso.
