Diagem International Resource (DGM-V) has completed a $1.75-million private placement financing with Dundee Precious Metals Fund and Northbrock Capital removing the final hurdle in the path of completing its merger with fellow junior Emerging Africa Gold (YEG-V), which was announced last August.
Diagem plans on using the proceeds from the placement to advance alluvial and kimberlite diamond projects in Brazil.
Under the amalgamation, EAG shareholders will receive one common Diagem share for each EAG share held. The new company will retain the name Diagem International Resource.
Diagem’s board of directors will add two new members — EAG President Mousseau Tremblay and Dynamic Mutual Funds President Jonathan Goodman.
Diagem’s main asset is a 100% interest in a 140,000-ha portion of the Juina diamond region in the Brazilian state of Matto Grosso. This includes both alluvial and kimberlite-pipe targets. Diagem has a 100% interest in several diamondiferous kimberlite pipes in the area.
The company is building two plants there capable of processing alluvial gravels and weathered kimberlite. One of the plants is ready to begin processing this week. These assets will be combined with EAG’s 51%-owned Claim 1000 property, also in the Juina area, where EAG has recently rehabilitated its own diamond-recovery plant.
EAG has a 28% stake in KWG Resources, which has a 51% interest in joint ventures with Spider Resources (SPQ-V). Those joint ventures have interests in seven diamond-bearing kimberlites in the James Bay Lowlands, a joint venture with DeBeers Canada, and a 45-sq.-km property in Wawa, Ont., hosting 20 diamond occurrences.
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