Vancouver, December 1, 2003 – Diamond Fields International Ltd. (TSX:DFI) is pleased to announce the completion of non-brokered private placements totalling $8,100,000, pursuant to which the Company issued 6,600,000 Units at a price of $0.60 per Unit for aggregate proceeds of $3,960,000 (the “Unit Private Placement”), and 6,900,000 Subscription Receipts convertible into Units on a one for one basis, at a price of $0.60 per Subscription Receipt for aggregate proceeds of $4,140,000 (the “SR Private Placement”). Each Unit consists of one common share in the capital of DFI (a “Share”) and one non-transferable share purchase warrant (a “Warrant”), each Warrant entitling the holder to purchase one additional Share, exercisable until November 28, 2006 at a price of $1.00. Should the weighted average closing price of DFI’s Shares equal or exceed $1.30 per Share for a period of 20 consecutive days at any time between 6 months and 35 months after the closing and DFI gives the Warrant holders notice thereof, the Warrants must be exercised within 30 days or they will terminate.
Proceeds from these private placements will be used to fund continued development of DFI’s Namibian marine diamond concession, as well as exploration activities in Greenland, Sierra Leone, and Madagascar, and for repayment of debt and general working capital purposes.
The Company paid finders’ fees equal to a cash commission of 6% of the gross proceeds of the subscriptions found by the finders and Compensation Receipts to purchase up to a total of 485,430 Shares at an exercise price of $0.74 per Share until November 28, 2005. Should the weighted average closing price of DFI’s Shares equal or exceed $1.30 per Share for a period of 20 consecutive days at any time between 6 months and 23 months after the closing and DFI gives the Compensation Receipts holders notice thereof, the Compensation Receipts must be exercised within 30 days or they will terminate.
Completion of the SR Private Placement and the issue of the Compensation Receipts is subject to receipt of shareholder approval, which will be sought at the Company’s upcoming Annual General Meeting on December 17, 2003. All proceeds received from the SR Private Placement will be held in trust until such approval is received.
The Subscription Receipts, Shares, Warrants and Compensation Receipts and the Shares issuable upon exercise of the Warrants and Compensation Receipts are subject to a hold period under applicable securities legislation and may not be traded until March 29, 2004.
About Diamond Fields International Ltd.
Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing diamond and nickel opportunities worldwide. The Company’s corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international diamond and nickel projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide.
DIAMOND FIELDS INTERNATIONAL LTD.
“Gregg J. Sedun”
Gregg J. Sedun, President and Chief Executive Officer
For further information contact Investor Relations at (1.604.682.2113).
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Diamond Fields’ 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. Diamond Fields does not assume the obligation to update any forward-looking statement.