Diamond Fields Resources Inc. (“DFR”) entered into a cooperation agreement (the “Agreement”) with TMH Acquisition Co (“TMH”), a special purpose vehicle established by Denham Mining Fund LP, to advance DFR’s Beravina Project in Madagascar (the “Project”).
Pursuant to the Agreement, TMH made an immediate payment of US$250,000 to DFR and will fund the next stage of exploration and development work on the Project (the “2019 Work Program”). The 2019 Work Program is expected to cost approximately US$500,000 and should be completed within seven months. Upon completion of the 2019 Work Program, TMH will have the option (the “Option”) to acquire 100% of the Project in consideration of a net payment of US$2,250,000 and a 9% sales royalty.
If the Option is exercised, TMH will incur all future capital and operating expenditures in relation to the Project and the Company will benefit, in perpetuity, from its right to 9% of all future mineral sales. DFR was advised by Fasken with a team consisting of Al Gourley, Jodi Katz, Karim Maalioun, Tom Wexler and Vanessa McMinn.
