DFI acquires new mining vessel

DIAMOND Fields International Ltd (TSX:DFI) was last week declared the winning bidder for the fully equipped twin airlift diamond mining vessel in a sealed tender process ordered by the High Court of Namibia.

The mining vessel known as mv Anya will be renamed “mv Diamond Fields Discoverer”. DFI said funding for the purchase price of about N$10 million would be provided under a secured loan from Quest Capital Corporation.In a press release, DFI said the vessel previously operated successfully in DFI’s license areas under contract with Gemfarm Investments (Pty) Ltd and Lazig (Pty) Ltd.DFI intends to upgrade the vessel and improve its mining efficiency.The Company contemplates resumption of mining with this vessel in approximately six months time after completion of required upgrades.Under the conditions of sale the vessel will be acquired on closing, free of all liens, encumbrances, preferences and all arrests and attachments effected before the passing of ownership of the vessel.Gregg Sedun, DFI President and CEO said: “We are delighted to have acquired our own ship mv Diamond Fields Discoverer at an excellent price.In the history of Diamond Fields, we have never enjoyed the security of having our own mining/ sampling vessel, and reliance on third-party vessels has made DFI vulnerable to inconsistent production.We are confident that our planned improvements to the vessel will increase production performance from previous levels with this vessel.”DFI also announced that total production of 52 826 carats of 95 per cent gem quality diamonds was the result from mining in its Marshall Fork Deposit in Luderitz for the four-month period from commencement of mining on June 9 to October 7.Total production of the diamonds was divided equally between DFI and its joint venture partner Samicor Mining Services (Pty) Ltd., resulting in a total of 26 413 carats to DFI.Total revenue to DFI from the sale of 20 799 carats sold to date from total production amounted to US$4,4 million (N$29,04 million) for an average sale price of US$211 per carat.Diamonds recovered but not yet sold from the Samicor joint ventures are said to be in the pipeline and revenue therefrom is expected by early next month.DFI said its share of production of 26 413 carats in the four months of mining in 2004 has exceeded that of 2003 by 85 per cent and the average diamond price for goods sold to date has increased by 44 per cent year on year.DFI said funding for the purchase price of about N$10 million would be provided under a secured loan from Quest Capital Corporation.In a press release, DFI said the vessel previously operated successfully in DFI’s license areas under contract with Gemfarm Investments (Pty) Ltd and Lazig (Pty) Ltd.DFI intends to upgrade the vessel and improve its mining efficiency.The Company contemplates resumption of mining with this vessel in approximately six months time after completion of required upgrades.Under the conditions of sale the vessel will be acquired on closing, free of all liens, encumbrances, preferences and all arrests and attachments effected before the passing of ownership of the vessel.Gregg Sedun, DFI President and CEO said: “We are delighted to have acquired our own ship mv Diamond Fields Discoverer at an excellent price.In the history of Diamond Fields, we have never enjoyed the security of having our own mining/ sampling vessel, and reliance on third-party vessels has made DFI vulnerable to inconsistent production.We are confident that our planned improvements to the vessel will increase production performance from previous levels with this vessel.”DFI also announced that total production of 52 826 carats of 95 per cent gem quality diamonds was the result from mining in its Marshall Fork Deposit in Luderitz for the four-month period from commencement of mining on June 9 to October 7.Total production of the diamonds was divided equally between DFI and its joint venture partner Samicor Mining Services (Pty) Ltd., resulting in a total of 26 413 carats to DFI.Total revenue to DFI from the sale of 20 799 carats sold to date from total production amounted to US$4,4 million (N$29,04 million) for an average sale price of US$211 per carat.Diamonds recovered but not yet sold from the Samicor joint ventures are said to be in the pipeline and revenue therefrom is expected by early next month.DFI said its share of production of 26 413 carats in the four months of mining in 2004 has exceeded that of 2003 by 85 per cent and the average diamond price for goods sold to date has increased by 44 per cent year on year.