DIAGEM International Rescource Corp. (fka DGM.V)

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Diagem International Resource Corp. and Emerging Africa Gold Inc. to Join Forces.
Mr. Jonathan Goodman and Dr. Mousseau Tremblay appointed to Diagem Board.


Diagem International Resource Corp. is pleased to announce that it has reached agreement with Emerging Africa Gold (EAG) Inc. pursuant to which EAG will amalgamate with a new wholly-owned subsidiary of Diagem whereby EAG shareholders will receive common shares of Diagem in exchange for their EAG shares.
Pursuant to the terms of the letter agreement, which has been approved by the boards of both companies, the EAG shareholders will, for each common share of EAG held, receive one common share of Diagem. The transaction is subject to customary conditions, including due diligence and regulatory approval.

In conjunction with this agreement Diagem will undertake a further private placement of $1 million at a price of $0.20 per unit. Each unit consisting of one share and one purchase warrant at a price of $0.23 in the first year and $0.33 in the second. This private placement is expected to be fully subscribed.

Diagem International will absorb all of Emerging Africa's assets and personnel. The new company will operate as Diagem International Resource Corp. With this transaction, Diagem acquires further Brazilian properties and indirect interests in a number of identified diamondiferous kimberlite deposits in Canada, and an existing joint venture with DeBeers.

Diagem also announces the completion of the second tranche of the private placement of 2,500,000 units at $0.20 per unit, previously announced July 4, 2001. Dundee Precious Metals Inc. and Northbrock Capital Inc., have each subscribed for 750,000 shares of this private placement.

Furthermore, Diagem welcomes Mr. Jonathan Goodman, President and CEO of Dynamic Mutual Funds Ltd and Dr. Mousseau Tremblay, currently President and CEO of Emerging Africa, both of whom will immediately join Diagem's Board of Directors.

Mr. Goodman, also Executive Vice President of Dundee Bancorp Inc. and President and CEO of Dundee Precious Metals Inc. holds a geological engineering degree from the Colorado School of Mines and an MBA from the University of Toronto.

Dr. Mousseau Tremblay has a Ph. D. from McGill University in mining economics and geology and is recognized world wide as a leader in the field of diamond exploration. He is credited with the discovery of several kimberlite deposits in Africa and Canada, including the discovery of the Bamigui-Bangoran deposit in the Central African Republic. He worked for a period of fourteen years with the world's leading diamond producer, De Beers, and established that company's North American Diamond exploration division. He spent another four years as a special consultant ensuring the supply of natural diamonds to a state-owned French Corporation.

David Cohen, President and CEO of Diagem said, "This transaction, while appearing simple in principle, opens numerous doors of opportunity for our company. Combining our identified assets, and potential diamond deposits, with those of Emerging Africa sets the stage for Diagem to move both aggressively and successfully ahead with our vision of becoming a world class, vertically integrated, diamond exploration, mining and marketing company."

http://www.diagem.com/todo/2001aug21.html