BHP Diamonds Inc. and Dia Met Minerals Ltd. Announce Memorandum of Understanding with De Beers.KELOWNA, British Columbia--(BUSINESS WIRE)--March 4, 1999--Dia Met Minerals (TSE:DMM DMM - Dammam (Saudi Arabia) DMM - Dance Music Magazine DMM - Dansville and Mount Morris Railroad Company DMM - Data Management Module DMM - Delay Modulation Mark DMM - Design Methodology Manager DMM - Designated Market Maker (investing) DMM - Digital Molecular Matter DMM - Digital Multi-Meter DMM - Digital Music Manager DMM - Digitalnej Mape Mesta DMM - Dimethylamaleate DMM - Direct Material Margin DMM - Direct Metal Master.A.) (AMEX:DMM.A) (TSE:DMM.B.) (AMEX:DMM.B) BHP Diamonds (NYSE:BHP) -- BHP Diamonds Inc. and Dia Met Minerals Ltd. wish to announce that a Memorandum of Understanding (MOU) has been signed between BHP Diamonds Inc. and De Beers Centenary for the sale of a portion of the production of rough diamonds from the EKATI(TM) Diamond Mine. The MOU provides for the negotiation of an agreement for the sale of 35 per cent of the run-of-mine production from the EKATI(TM) Diamond Mine over a three year time period. The final arrangement will require appropriate approvals and is expected to be completed by mid-1999. Regular sales to De Beers would begin shortly thereafter. "With this arrangement in place, we will have implemented the final major component of our marketing program. We are currently selling our production through the BHP Diamonds' sales office in Antwerp. The market response has been very positive and we have certainly made a successful market entry," said James R. Rothwell, President of BHP Diamonds Inc. "Once the De Beers agreement is in place, the remaining 65 per cent of the production will continue to be marketed independently by BHP." "We are pleased to have developed a sales relationship with De Beers, the world's largest marketer of rough diamonds. This understanding will lead to assured sales for a significant portion of our production," said James E. Eccott, President of Dia Met Minerals Ltd. BHP Diamonds (51 per cent), Dia Met (29 per cent), and two geologists, Charles E. Fipke (10 per cent) and Stewart Blusson (10 per cent), developed the EKATI(TM) Diamond Mine which is located in the Lac de Gras area of the Northwest Territories, about 300 km northeast of Yellowknife. James R. Rothwell, President, BHP Diamonds Inc James E. Eccott, President Dia Met Minerals Ltd. The American Stock Exchange and Toronto Stock Exchange have neither approved nor disapproved the information contained in this release. |
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