Diamond Fields: Minority Shareholders Approve Convertible Debt

Jun 22, 2007 | 2007, Corporate News

(Cape Town, June 22, 2007) — Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to announce that at the extraordinary general meeting (the “EGM”) of the Company held on June 20, 2007, the Company received necessary minority shareholder approval to permit the conversion of the principal amount owing to Spirit Resources SARL (“Spirit”) under the credit facility with Spirit, into common shares of the Company on the basis of one common share for each US$0.15 of principal. Accordingly, subject to receipt of final TSX acceptance of the transaction, up to a maximum of 26,544,227 common shares are issuable to Spirit on full conversion of the up to approximately US$3.98 million owing to Spirit under the credit facility (the “Principal”). Spirit is controlled by Mr. Jean- Raymond Boulle, the Company’s largest shareholder who currently holds, directly or indirectly, approximately 18.3% of the Company’s issued and outstanding shares.

The details of the voting results at the EGM are set forth in the Report on Voting Results filed on SEDAR (www.sedar.com) on June 21, 2007, and full particulars of the transaction are contained in the Company’s information circular dated May 16, 2007 which is also available on the SEDAR website.

Spirit has informed the Company that, as soon as practicable following receipt of final TSX acceptance of the transaction, Spirit intends to fully convert the Principal into common shares of DFI.

Roger Daniel, the President and CEO of the Company, commented: “We are pleased to have received the support of the Company’s minority shareholders to approve this transaction. Upon the full conversion of the outstanding Spirit debt, the financial position of the Company will be significantly enhanced through the removal of substantially all of the Company’s non-trade debt from its balance sheet and the discharge of Spirit’s encumbrances over the Company’s assets, including its mining vessel DF Discoverer“.

DATED June 22, 2007.


“Roger J. Daniel”

Roger J. Daniel, President and CEO
For further information, contact Roger Daniel at +27 21 425 1990
Website: www.diamondfields.com

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. Diamond Fields does not assume the obligation to update any forward-looking statement other than in accordance with applicable law.

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