April 04, 2001
Confirmation Of Funding - Fiscal 2002
TRANS HEX INTERNATIONAL LTD. (CDNX: THI) is pleased to announce that the Company has received the necessary approvals for the extension of the project finance loan agreements concluded last year with Trans Hex Group Limited of South Africa, the Company's parent company, for the funding of the Barra Grande project in Brazil (to a maximum of a further US$1 million), and the Northbank project in Namibia (to a maximum of a further N$2.1 million, approximately US$260,000) for a further year, to March 31, 2002. These loans will only be drawn down by the Company as required and are repayable out of up to 75% of the initial surplus cash received from the projects. Repayment will firstly be applied to the outstanding capital and secondly, to the extent that additional surplus cash is available, towards interest calculated at LIBOR. Trans Hex Group has also transferred to the Company sufficient cash to meet its expected corporate general and administration expenses for the next fiscal year, ended March 31, 2002, on the basis of an unsecured and interest free revolving credit facility.
In other news, during March 2001 the Company finalized a joint venture agreement with Rio Tinto Zimbabwe Limited ("RTZ") in terms of which RTZ will manage and fund an exploration program covering three adjoining concession areas in Southern Zimbabwe. In terms of the agreement, a consortium comprising Trans Hex (Zimbabwe) Limited (50%), a wholly owned subsidiary of Trans Hex International, and Somabula Explorations Limited (50%), a private Zimbabwean company, have the right to subscribe for a 30% interest in any diamond mine discovered and explored to feasibility by RTZ, within the area of the three adjoining exclusive prospecting licenses. RTZ have commenced a program exploring for kimberlite deposits in the concessions.
In Namibia, the Company continues to pursue recognition of its rights in the dispute over surface access at the Northbank project. The recent sitting of the High Court of Namibia was adjourned after two weeks of hearings and will reconvene for the month of August 2001. The Company has on several occasions endeavoured to settle this dispute by direct negotiation with the surface owner, without success.
Effective March 15, 2001, following his appointment as head of Investment Banking of Canaccord Capital Corporation, Mr. Peter Marrone resigned as a director of Trans Hex International. The board of directors of the Company wishes to thank Peter for his five years of valued contributions and wish him all the best in his new endeavours. No new appointments are envisaged at this time.
Trans Hex International is an international diamond exploration company with interests in exploration projects and joint ventures in Brazil, Namibia, Botswana and Zimbabwe. The principal shareholder of the Company is Trans Hex Group Limited, a South African producer of high quality gem diamonds, with well established independent diamond marketing facilities. The design and conduct of the Company's exploration programs is the responsibility of Mr. Peter Walker, a professional geologist registered with the South African Council for Natural Scientific Professions.
FOR FURTHER INFORMATION PLEASE CONTACT:
D.M. (Niel) Hoogenhout - Chairman and C.E.O.
Peter D. Danchin - Chief Operating Officer
Peter W.A. Walker - Vice President, Exploration
Stephen Woodhead - Chief Financial Officer