VANCOUVER, BC, April 30, 2021 /CNW/ – Diamond Fields Resources Inc. (TSXV: DFR) (“DFR” or, including its subsidiaries, the “Company”) announces that it has entered into a loan agreement (the “Agreement”) with the Company’s major shareholder, Spirit Resources SARL (the “Lender”), whose beneficial owner is Mr. Jean Raymond Boulle.
The Agreement is for an eight percent (8%) unsecured term loan facility of up to US$1,000,000 (the “Loan”), which will be used for general corporate purposes, and shall be repayable in full on 29 April 2022 (the “Final Repayment Date”).
DFR shall prepay the Loan upon receipt of the proceeds of any debt, equity or other financing that occurs prior to the Final Repayment Date.
The entering into of the Agreement (the “Transaction”) is considered a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) due to the fact that the Lender is the Company’s major shareholder and a related party to the Company. The Transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 (pursuant to subsections 5.5(b) and 5.7(f)) on the basis that the Company is not listed on a specified market and the Agreement constitutes a loan from a related party with no equity or voting component. The Transaction was approved by the Company’s independent directors and will have no effect on the percentage of securities of the Company owned by the Lender.
Notes to Editors:
DFR is a TSX Venture Exchange listed exploration and mine development company with assets in Madagascar and Namibia. In Madagascar, DFR is developing the Beravina Project, an advanced high grade hard rock zircon exploration prospect located in the west of the country, approximately 220km east of the port of Maintirano and near a state road. DFR acquired Beravina from Pala Investments and Austral Resources in 2016. In Namibia, the Company owns several offshore diamond mining licences including the ML 111 concession which has a ten-year mining licence, effective until 4 December 2025. In 2018 and early 2019 mining undertaken by a contractor on the Company’s ML111 licence area produced two parcels of rough diamonds totalling 47,318.41 carats.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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. The Company does not assume the obligation to update any forward-looking statement, except as otherwise required by law.
SOURCE Diamond Fields Resources Inc.
View original content: http://www.newswire.ca/en/releases/archive/April2021/30/c1336.html