DIAMOND PAGE — Diamond Fields raises $5.7 million to buy

Flush with cash from a recent private placement with First Marathon Securities and Yorkton Securities, Diamond Fields Resources (VSE) has agreed to buy a Namibian diamond producer for US$3.3 million and 366,666 common shares.

A recent entrant to the diamond exploration game, Diamond Fields just closed a $5.7-million placement of two million units, each consisting of one share and two warrants, at $2.85 per unit.

Backed by heavyweight promoter Robert Friedland, Diamond Fields has climbed to more than $10 from a low of $3.10 since listing in April. Friedland’s gold exploration vehicle, Venezuelan Goldfields (VSE) has seen equally remarkable gains, trading recently at $11.50 in a 52-week range of 25 cents to $14. Diamond Fields originally planned to buy 60% of the Angra Pequena Diamond Co., owner of the Namibian West Coast Diamond Co. (NWCDC), but will now acquire full control of the diamond producer.

NWCDC owns a 250-sq.-mile concession along the coast of Namibia, stretching from the low-water mark to 12 km out to sea and from Diaz Point in the south to Hottentots Point in the north.

To date, about 35,000 carats of mainly gem-quality diamonds have been extracted from the alluvial concession, which is bounded by De Beers’ holdings to the east, north and south. March sales averaged US$170 per carat. Based on geophysical, sampling and geological data, independent consultant Robbrecht De Decker estimates the “Luderitz Sea Diamond Concession” contains extensive diamondiferous gravel deposits.

Diamond Fields has also entered into an option agreement with Archean Resources to acquire 241 claims in Labrador.

To complete the earn-in, Diamond Fields will pay Archean US$78,000 in cash and issue 15,000 common shares upon signing, as well as pay an additional US$294,000 in installments over three years.

In southern Saskatchewan, Diamond Fields is spending $750,000 on exploration in partnership with Lumina Investment (VSE) and Super Twins Resources (VSE). The company also has diamond interests in Arkansas and Minnesota.