Vaaldiam raises Boungou funds

To advance the Boungou alluvial diamond property, Vaaldiam Resources (VRL-V) has closed a financing and marketing agreement with N. Aftergut & Zonen (A&Z) of Antwerp, Belgium.

Situated in the Central African Republic, the project occupies 35 km of the river after which it is named. Reportedly, the river accounted for one-quarter of the country’s 1999 production of 415,000 carats.

Artisanal miners are exploiting three prospects on the property: Djourou, Aigbando and Trouapou-Boungou. Government records show that Trouapou-Boungou has yielded 15,000 carats annually. Aigbando yielded the country’s largest stone, weighing 215 carats.

In January, Vaaldiam acquired an 80% interest in the property by issuing 100,000 shares to each of United Reef (which is unlisted) and Trans Hex International (THI-V). As part of the deal, those companies are entitled to 1% of future revenue, up to a maximum to US$250,000.

The recent deal saw Vaaldiam issue 1 million shares to A&Z at 35 apiece. The proceeds, as well as the shares, are being held in escrow, pending the junior’s raising of another $1.15 million by July 31.

A&Z has also agreed to market any diamonds produced by Vaaldiam at its various projects in South Africa and the Central African Republic, though this too is subject to the completion of the separate financing noted above.

For its role as underwriter, Northern Securities received 100,000 warrants. The warrants can be exchanged for an equivalent number of Vaaldiam shares at 35 apiece within two years of the deal’s closing.