Rex Diamond completes US$2.5 million financing and Repadre president and E.E.O. joins the board

Business Wire, Dec 12, 1995

TORONTO--(BUSINESS WIRE)--Dec. 12, 1995--(CANADIAN DEALING NETWORK: REXD) Rex Diamond Mining Corp. (Rex Diamond) Tuesday announced that wholly-owned subsidiary, Rex Diamonds (Barbados) Inc., has completed the previously announced US$2.5 million financing with TSE listed, Repadre Capital Corp. (Repadre).

Repadre purchased a sliding scale royalty interest on gross sales from Rex Diamond's South African mines. The royalty rate will be 1.6 percent of gross sales, until Repadre recovers its purchase price of US$1,625,000, and a subsequent 1.25 percent in perpetuity. In addition, Repadre has purchased 500,000 Rex Diamond common shares at US$1.75 per share for total gross proceeds of $875,000.

Rex Diamond is using the proceeds to expand its operations and to accelerate the rate of production at its three principal diamond producing mines: Ardo, Rex, and Bellsbank, all in South Africa.

In addition, the company announced that Joseph Conway, president and chief executive officer of Repadre Capital Corp., has joined the board of directors of Rex Diamond Mining Corp. Consequently, the board of directors of the company comprises four directors including two independent directors.

Rex Diamond Mining Corp. is a profitable producer comprised of three, top gem-quality diamond mines in South Africa. Production from its 84 percent owned Ardo and Rex, and wholly-owned Bellsbank mines averages more than US$240 per carat with an estimated mine reserve of at least 18 years.

In addition to producing top gem-quality diamonds, the company owns sorting and marketing facilities in Antwerp, Belgium, and an extensive portfolio of advanced exploration properties in South Africa and Sierra Leone. The company estimates that it will produce at least 64,000 carats in its fiscal year ended March 31, 1996 and 142,000 carats in its fiscal year ended March 31, 1998.

CONTACT: Rex Diamond Mining Corp., Toronto

Ross Orr, 416/777-0001, fax: 416/777-1254 or

Chris Cory, 416/777-0001, fax: 416/777-1254

INDUSTRY KEYWORD: MINING REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or