LONDON, Jan. 18, 2013 (GLOBE NEWSWIRE) -- Americas Diamond Corp. (OTCBB:ADMC) ("Americas Diamond", "ADMC" or "the Company"), a diamond and precious metals exploration company, can confirm having entered into a letter of intent to acquire SUDAM Diamonds Ltd, which has an option on two diamond concessions that have benefitted from an investment of over $13,000,000 (USD) in addition to a state of the art processing and production facility.
SUDAM Diamonds Ltd (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 Venezuela).
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.
It is expected that the ADMC shares required to close the acquisition of CMA will be issued upon the closing of a definitive purchase agreement between SUDAM and ADMC. These ADMC shares will be priced at the lower of: (i) an assumed share price of $1.00, or (ii) the 5 day VWAP (volume weighted average price) when the milestones (receipt of production permits and commercial production) are achieved.
"We are extremely excited to announce this letter of intent. The Natal I and II mining concessions possess the potential to host major ore bodies of diamonds and have produced extremely positive results steadily over a number of years. Furthermore, recent surveys promise excellent prospects for future investment. 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. There can be no assurance that Americas Diamond Corp. will be able to complete a definitive agreement with SUDAM, complete the acquisition of CMA through the issuance of $13,000,000 worth of shares, or develop the properties to production. In order to close on the acquisition of CMA, Americas Diamond Corp. will need to issue a minimum of 13,000,000 shares of its common stock.
ON BEHALF OF THE BOARD OF DIRECTORS,
Americas Diamond Corp.
Daniel Martinez
Chief Executive Officer