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Diamond Core Resources Limited ("Diamcor")
ISIN: ZAE000045688
JSE Share code:DMR
PRESS RELEASE
Diamond Core Resources Limited ("Diamcor") is pleased to announce the conclusion
of a Joint Venture Agreement with the Skeyfontein Communal Property Association
("CPA") being the representative body of the Skeyfontein Community ("the Joint
Venture").
The Skeyfontein Community, having successfully instituted a land restitution
claim, is the owner of the surface of the farm Skeyfontein on which diamond
bearing fissures and other kimberlite anomalies may be present ("Skeyfontein").
The Skeyfontein farm is situated some 40 km southeast of the town of Postmasburg
in the Northern Cape, with several known diamondiferous kimberlite pipes in the
vicinity. Diamcor management regard Skeyfontein as being of significant
geological interest, and intend to conduct, initially, an exploration programme
through the Joint Venture Company formed for this purpose, Dikeing Mining (Pty)
Ltd ("Dikeing").
A Memorandum of Understanding has been signed by Diamcor and CPA at Kimberley on
30 May 2003. The purpose of the Joint Venture will be to prospect for, and if
viable, to mine diamonds on the Skeyfontein farm. Equity in Dikeing will
initially be held 50% by Diamcor and 50% by CPA. Both parties shall enjoy equal
representation at Board level of Dikeing .
Diamcor will be the sole financier of the exploration programme on Skeyfontein
until a feasibility study has been completed. Any capital required by Dikeing,
if the project is to proceed past the feasibility stage, would be equally
contributed between the parties, with either party being diluted in the capital
structure of Dikeing to a minimum of 20 percent each, if either of the parties
elect or are unable to make the expected capital contributions to the Joint
Venture post feasibility. The Joint Venture allows for the portion of equity
lost by either party to be re-purchased from CPA or Diamcor respectively, within
two years of dilution for value.
Diamcor shall act as the manager and operator of Dikeing"s prospecting,
exploration and/or mining activities. Diamcor has undertaken to make every
effort to assist the CPA to raise the requisite capital if the Joint Venture is
to proceed to the mining stage, and will endeavour to create financial
structures within Dikeing to make effective financing possible, without
prejudice to the financial security of the CPA or the Skeyfontein Community.
Diamcor has committed itself to conducting a feasibility study ("the study"), if
exploration proves positive, as to the viability of undertaking beneficiation of
any diamonds recovered from Skeyfontein at proposed beneficiation centres in the
Northern Cape. All stakeholders shall be engaged in the study.
Diamcor and CPA, through Dikeing are committed to the successful structuring and
implementation of a social development programme at Skeyfontein which is
initially expected to include the implementation of a feeding scheme and
renovations to the community center and social infrastructure, as well as the
creation of work opportunities for the Skeyfontein Community. It is the
intention of Diamcor that the Joint Venture fully complies with the Mining
Charter as laid down by the Department of Minerals and Energy with respect to
the empowerment of previously disadvantaged communities.
The addition of the Dikeing Joint Venture to Diamcor is in line with the Diamcor
strategy of building a portfolio of diamond exploration and mining assets.
Theo Botoulas
Managing Director
For and behalf of the Board of Diamcor
03rd June 2002.
Date: 03/06/2003 12:51:08 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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