CAPE TOWN, June 22 /CNW/ - Diamond Fields International Ltd. (DFI:TSX)
("DFI" or the "Company") is pleased to announce that at the extraordinary
general meeting (the "EGM") of the Company held on June 20, 2007, the Company
received necessary minority shareholder approval to permit the conversion of
the principal amount owing to Spirit Resources SARL ("Spirit") under the
credit facility with Spirit, into common shares of the Company on the basis of
one common share for each US$0.15 of principal. Accordingly, subject to
receipt of final TSX acceptance of the transaction, up to a maximum of
26,544,227 common shares are issuable to Spirit on full conversion of the up
to approximately US$3.98 million owing to Spirit under the credit facility
(the "Principal"). Spirit is controlled by Mr. Jean-Raymond Boulle, the
Company's largest shareholder who currently holds, directly or indirectly,
approximately 18.3% of the Company's issued and outstanding shares.
The details of the voting results at the EGM are set forth in the Report
on Voting Results filed on SEDAR (www.sedar.com) on June 21, 2007, and full
particulars of the transaction are contained in the Company's information
circular dated May 16, 2007 which is also available on the SEDAR website.
Spirit has informed the Company that, as soon as practicable following
receipt of final TSX acceptance of the transaction, Spirit intends to fully
convert the Principal into common shares of DFI.
Roger Daniel, the President and CEO of the Company, commented: "We are
pleased to have received the support of the Company's minority shareholders to
approve this transaction. Upon the full conversion of the outstanding Spirit
debt, the financial position of the Company will be significantly enhanced
through the removal of substantially all of the Company's non-trade debt from
its balance sheet and the discharge of Spirit's encumbrances over the
Company's assets, including its mining vessel DF Discoverer".
DATED June 22, 2007.
DIAMOND FIELDS INTERNATIONAL LTD.
"Roger J. Daniel"
Roger J. Daniel, President and CEO
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.
Diamond Fields does not assume the obligation to update any forward-looking
statement other than in accordance with applicable law.
For further information:
For further information: contact Roger Daniel at +27 21 425 1990