Diamond Fields Resources (TSX-V: DFR) announced that it has entered into a cooperation agreement with TMH Acquisition, a special purpose vehicle established by the Denham Mining Fund, to advance the company's Beravina project in Madagascar.
In a press release, Diamond Fields said that pursuant to the agreement, TMH will make an immediate payment of $250,000 and will fund the next stage of exploration and development work on Beravina, which is expected to cost $500,000 and which should be completed within seven months.
According to the Vancouver-based miner, upon completion of the 2019 Work Program, TMH will have the option to acquire 100% of the project in consideration of a net payment of $2 million and a 9% sales royaly.
Upon exercise of the option, TMH is required to place the project into production by no later than June 30, 2023.If TMH exercises its option, the firm will be required to bring Beravina into production by no later than June 30, 2023, a date that is subject to certain extensions for events of force majeure such as permitting delays.
The 625-hectare Beravina project is located within the Melaky Region of Western Madagascar. It is a hard rock zircon deposit with a NI 43-101 Inferred Mineral Resource estimate of 1.5 million tons at 22.7% zircon (ZrSiO4) equivalent to 15.3% ZrO2.
"Results so far show that, utilizing industry standard beneficiation technologies, zircon can be concentrated to levels of between 50% ZrO2 and 58% ZrO2 with varying levels of thorium ingrained," corporate information states.