Business
Diamond Fields International Ltd. - Standby Guarantee Agreement for Proposed Rights Offering
Diamond Fields International Ltd. - Standby Guarantee Agreement for Proposed Rights Offering.
About this update from Dfr Gold Inc
[{"type":"text","content":"\n\n\n\n\nSYMBOL: DFI\n\nCAPE TOWN, South Africa, Sept. 1 /CNW/ - Diamond Fields International\nLtd. (DFI:TSX) (\"DFI\" or the \"Company\") is pleased to announce that it has\nentered into a standby guarantee agreement with Spirit Resources SARL\n(\"Spirit\") in relation to a proposed rights offering of the Company pursuant\nto which the Company will, subject to receipt of all necessary regulatory\napprovals, offer to distribute to the Company's shareholders on a pro rata\nbasis and at no charge, transferable rights to purchase up to 28,000,559\ncommon shares of the Company at a price of $0.09 per share for gross proceeds\nof up to $2,520,050 (representing up to approximately 24.7% of the Company's\noutstanding shares). Pursuant to the standby guarantee agreement, Spirit has\nagreed to participate in the proposed rights offering by purchasing up to\n$2,000,000 of the offering through exercising its basic subscription\nprivilege, additional subscription privilege and by purchasing additional\nshares on a stand-by commitment basis if necessary. Spirit has also advanced\nto the Company $500,000 to be applied towards Spirit's participation in the\nrights offering. Under the agreement, DFI is entitled to employ such funds for\nits general corporate purposes and the advance will, pending closing of the\nrights offering, constitute a non-interest bearing loan from Spirit to DFI.\nSpirit is controlled by Jean-Raymond Boulle, who is the Company's largest\nshareholder currently beneficially owning, directly or indirectly,\napproximately 16% of the Company's issued and outstanding common shares. None\nof Spirit, Jean-Raymond Boulle or any affiliated company will receive any\nconsideration from DFI for Spirit's covenant to participate in the rights\noffering pursuant to the standby guarantee agreement. The standby guarantee\nagreement has been accepted by the Toronto Stock Exchange.\nFurther details on the proposed rights offering will be provided by the\nCompany in due course and will be contained in a rights offering circular to\nbe mailed to shareholders as of a record date to be set by DFI's Board of\nDirectors. The rights offering remains subject to applicable Canadian\nsecurities laws and stock exchange rules, including completion and approval of\nall necessary filings with applicable Canadian securities regulatory\nauthorities and th...