LONDON, March 6, 2013 (GLOBE NEWSWIRE) -- Americas Diamond Corp. (OTCBB:ADMC) "Americas Diamond" or "the Company") is pleased to announce they have executed a definitive stock purchase agreement with SUDAM Diamonds Ltd, which concludes the acquisition of the company, and the rights to their option over the Natal diamond mining concessions.
On January 18, 2013 the Company announced having executed of a letter of intent to acquire SUDAM Diamonds Ltd ("SUDAM"), which has an option on two diamond concessions that have benefitted from over $13,000,000 (USD) in investment to date, in addition to owning a state of the art diamond processing and production facility.
The Company can now confirm having completed the definitive Stock Purchase Agreement with SUDAM, in which the Company has acquired 100% of the outstanding capital stock of SUDAM, in consideration for the issuance of an aggregate of 1,221,695 shares of the Company common stock, in addition to the assumption of SUDAM's obligations. As a result of the closing of the Stock Purchase Agreement, SUDAM, has become a wholly owned subsidiary of Americas Diamond Corp.
SUDAM has assets consisting of two parts: 1) an option to acquire Compania Minera Adamantine CA ("CMA"), a Venezuelan company which presently holds two diamond concessions: Natal I and Natal II, and 2) a 3-stage treatment plant, 50-70tph scrubber, 10tph DMS plant and X-Ray final recovery section from Bateman's in South Africa (this being the only diamond recovery plant of its type in the region).
Under the terms of the option to acquire CMA, ADMC is required to issues shares equal in value to $13,000,000 under the following terms:
|(a) 50% when production permits are issued; and|
|(b) the remaining 50% when commercial production is reached.|
The Company plans to implement a final program of bulk-sampling on the Natal I and II diamond concessions in the Guaniamo district. The program has been designed to test the down-dip extensions of the Belmudez diamondiferous zone, which is the focus of the exploration.
The main excavation work is expected to occur in two long declines, commencing at surface, trending roughly North-South down to approximately 25 meters below surface. The Company plans to carefully develop the trends to ensure the safety of the operators, with batter angles sufficiently flat to offset slumping. It is anticipated that approximately 50,000 tons of treatable material from each trench will be put through the diamond recovery plant. This exercise is expected to provide in excess of 5,000 carats, which number is widely recognized as providing enough of a sample to measure the style of a "diagnostic individual diamond population". From sampling to date, the Company believes the effort should produce between 10,000 and 20,000 carats in total.
The objective is to establish the parameters of the Belmudez zone, as to strike width and minimum depth, to calculate grade characteristics, diamond quality, size, spread and value, prior to a feasibility study. The results of this work will help determine the likely productivity and profitability of the project.
The program, as designed, has an operating budget set at between $1-2 million (USD), with additional capital expenditures of approximately $250,000 in the first year. This will be followed by feasibility work, in a second year, which could require up to $2 million to complete.
"We are extremely excited to have completed the acquisition. The completion of this acquisition in addition to our recently announced equity financing agreement really puts us in a strong position to be able to fully explore and develop these concessions, which we believe have the potential to host major ore bodies of diamonds. We will be announcing more information and a formal development plan in the very near future." Commented Daniel Martinez, Chief Executive Officer of Americas Diamond Corp.
ABOUT AMERICAS DIAMOND: Americas Diamond Corp., (OTCBB:ADMC), is a publicly traded diamond and precious metals exploration company focused on effectively and efficiently acquiring, exploring and developing high impact natural resource properties. More information can be found on our website, www.AmericasDiamondCorp.com.
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Americas Diamond Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to Americas Diamond Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. Americas Diamond. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
|ON BEHALF OF THE BOARD OF DIRECTORS,|
|Americas Diamond Corp.|
|President and Chief Executive Officer|
|Americas Diamond Corp.|
|2nd Floor, Berkeley Square House|
|Direct: +44 207 887 6189|
|Fax: +44 207 887 6001|
|Toll Free: 1-855-500-DIAMOND|
Source:Americas Diamond Corp.