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.
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.