Emerging Africa Gold (YEG-V) is merging with Diagem International Resource (DGM-T) to combine a number of grassroots diamond assets in Brazil and Canada.
EAG shareholders will receive one common Diagem share for each EAG share held. The new company will retain the name Diagem International Resource.
Diagem’s board of directors will add two new members — EAG President Mousseau Tremblay and Dynamic Mutual Funds President Jonathan Goodman.
Diagem’s main asset is a 100% interest in a 140,000-ha portion of the Juina diamond region in the Brazilian state of Matto Grosso. This includes both alluvial and kimberlite-pipe targets.
The company is building two plants there capable of processing alluvial gravels and weathered kimberlite. These assets will be combined with EAG’s 51%-owned Claim 1000 property, also in the Juina area, where EAG has recently rehabilitated its own diamond-recovery plant.
In related news, Diagem will undertake a $1-million private placement priced at 20 per unit. Each unit will consist of one share and one warrant allowing the holder to buy another share for 23 in the first year and 33 in the second.
Diagem also completed the second tranche of a private placement of 2.5 million units at 20 per unit. This was previously announced July 4. Dundee Precious Metals and Northbrook Capital have each subscribed for 750,000 shares.
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