Diamond Fields Backs Out of Finland Diamond Deal
October 03, 04
Diamond Fields International (DFI) has decided not to proceed with the acquisition of Finland diamond licenses from Discoverer Ltd. On July 15 the company announced it would purchase the prospective diamond exploration project located in Finland, along with potential rights to other projects under negotiation in Africa and Russia.
On Friday DFI said that after completing due diligence, the sides have agreed to amend their agreement, not acquire the Finland diamond licenses, not issue 2,250,000 common shares or pay Discoverer’s shareholders $656,000 as originally agreed.
The company did not provide a reason to the move, but said it will retain the right to continue negotiations on the exploration projects in Africa and Russia.
Gregg J. Sedun, President and CEO of Diamond Fields, said: “[Majority shareholder] Mr. Boulle and I are both happy with the amended terms and feel that this transaction is in the best interest of Diamond Fields and its shareholders. We are still actively pursuing the Russian and African projects and will keep the public updated on our progress.”
The agreement with Gondwana (Investments) SA, Angstrom Capital Ltd. and other shareholders of Discoverer Ltd, related to licenses that include a drill-ready project in the Kuopio-Kaavi kimberlite district of Finland and a license area in a potential new kimberlite province.
The interests are indirectly owned 70 percent by Diamond Fields' controlling shareholder Jean-Raymond Boulle, and 30 percent by two other arm's length parties.