AKD LIMITED 2003-04-14 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
The Company advises that AKD Ltd and Black Swan Resources Ltd, the parties to the Abaete Farm-In Agreement signed on 3 August 2000, have agreed to vary key terms of the Agreement. The variations agreed to by AKD and Black Swan will facilitate a more rapid transition to full production, should it be justified by the bulk testing results.
The parties have recognised the production limitations imposed on the program by the size of the current bulk testing plant. The parties believe that it is in the best interests of the project for the bulk testing program to be completed quickly and successfully and for Abaete to move to full production at which time a larger plant will be commissioned, which will be at AKD's cost. An 80 cubic metre per hour production jig plant suitable for mining is anticipated to cost US$170,000.
AKD's original obligations under the Agreement were to achieve production of 1,000 carats by the 3 August 2003 ("the end of the earning period") in order for AKD to earn a 60% interest in the project. The agreement has been varied such that AKD must now achieve
production of 500 carats to earn a 50% interest in the project by 3 November 2003. AKD will also have the option to extend the farmin period for a further 3 months to 3 February 2004 if required.
During the earning period, AKD will still receive 40% of all revenue generated from the sale of diamonds generated from the bulk testing program. AKD will remain as operator and manager of the project
following the earning of its 50% interest in Abaete.
Z A Sas
MANAGING DIRECTOR
AKD
akd limited
