Diamondworks First Diamonds Sale From Re-Established Koidu Mine
February 10, 04
DiamondWorks has concluded its first sale of diamonds from the re-established Koidu Mine in Sierra Leone held in joint venture with Magma Resources Limited.
January production from Pipe No. 1 amounted to 8,099 carats from 12,480 tons of ore treated and realized an average price of $223 per carat for gross proceeds of $1.8 million.
The recovered grade for January production from Pipe No. 1 was 65 carats per hundred tons and the average stone size was 0.31 carats. Of total January production, 93 percent of the diamonds recovered were of gem stone quality.
Included were 16 “special” stones weighing in excess of ten carats each, including four diamonds weighing over 20 carats each and two stones of over 30 carats each. The stones weighing in excess of 30 carats each were 30.091 carats and 35.778 carats and sold for $2,700 and $2,200/carat respectively. These 16 stones averaged $1,108/carat.
”We are very pleased to report that grade and prices achieved for the initial production from Pipe No. 1 have met with our expectations for this exciting project,” says CEO Tony Teixeira.
DiamondWorks's principal mineral properties are located in Sierra Leone, Angola and Central African Republic.
In related news, the company announced yesterday (Monday) that it had arranged a private placement of up to 14.9 million units for gross proceeds of up to Cdn$29 million (US$21.8 million).
Up to 6,716,000 of the units will be issued to Lyndhurst Limited, the company's largest shareholder, at a price of Cdn$1.95 (US$1.47) per unit, being the market price for the company's shares at the time price protection for the private placement was obtained.
Teixeira exercises control and direction over the shares of the company held by Lyndhurst. The balance of the units (up to approximately 8,184,000 Units) will be issued to arm's length institutional investors at a price of Cdn$1.80 ($1.35) per unit.