Diamond Fields International Ltd. (“TSX-DFI”) is pleased to announce that it has successfully settled its outstanding lawsuit with Trans Hex Group Limited of South Africa (“Trans Hex”) involving their joint venture agreement (the “Agreement”) covering certain portions of DFI’s sea diamond concessions near Luderitz, Namibia. Under the terms of the settlement, DFI will receive a total benefit of approximately Cdn.$800,000 (U.S.$500,000) of which approximately Cdn.$480,000 (U.S.$300,000) in cash will be paid by Trans Hex to DFI as payment of all penalties due by Trans Hex to DFI under the Agreement. The balance of Cdn.$320,000 (U.S.$200,000) represents forgiveness of debt for past diamond sales due to Trans Hex from DFI. As well, the Agreement will be of no further force and effect and neither party shall have the right to make any further claims against the other relating to the Agreement. Trans Hex and DFI have agreed to explore a possible new working relationship in regard to their respective interests in marine diamond mining.
DFI is also pleased to announce that it has reached an agreement with MIL Investments SARL (“MIL”), a company beneficially owned by Mr. Jean-Raymond Boulle, the Chairman, CEO and controlling shareholder of DFI, whereby MIL will reinstate its promissory note in the principal amount of U.S.$2 million (the “Note”) owed by DFI to MIL. As a result of this reinstatement, the remaining principal plus all accrued and unpaid interest will not be due until December 31, 2003, unless certain conditions occur, including a change of control of DFI or the incurrence of additional debt by DFI without the prior consent of MIL.
The settlement with Trans Hex will result in DFI once again enjoying 100% of all revenues derived from all of its Luderitz concessions subject only to any amounts DFI agrees to pay its mining contractors.
DIAMOND FIELDS INTERNATIONAL LTD.
Chairman and Chief Executive Officer
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.