TSX VENTURE: AFA
FRANKFURT: AJF
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Dec 10, 2009 11:36 ET
Afri-Can Amends Agreement With IMDH for Sampling Block J in Namibia
MONTREAL, QUEBEC--(Marketwire - Dec.10, 2009) - Afri-Can Marine Minerals Corporation ("Afri-Can") (TSXVENTURE:AFA)(FRANKFURT:AJF) is pleased to announce that it has signed anew agreement regarding sampling of its 70% owned Block J marinediamond concession in Namibia with International Mining and DredgingHolding Ltd. ("IMDH"). The new agreement replaces the originalagreement signed and announced on January 19th, 2006. Important changesin the new agreement are:
- The cost of the program will be paid by Afri-Can in cash:
-- IMDH will no longer have the option to convert the cost of the program marked up by 40% into Afri-Can shares,
-- IMDH will no longer have the option to convert the cost of theprogram marked up by 40% into a new Namibian company, to be 51% ownedby IMDH, that would own 70% of Block J,
-- IMDH will no longer have the option to convert the cost of theprogram marked up by 40% into a direct 51% holding of the Block J jointventure.
- In consideration for cancellation of the payment options set outin the original agreement, Afri-Can will grant IMDH 12.5 millionwarrants to purchase common shares of Afri-Can at an exercise price ofCDN $ 0.20 per share until June 15th, 2010.
- The cost of the sampling program remains unchanged at anestimated US$1.8 million. Half of charter cost is to be paid ondeparture of the vessel and the balance within 30 days of completion ofthe program.
The new agreement reflects the change in vessel from the MV MareOceano in the original 2006 agreement to the MV Explorer which wassubsequently acquired and converted by IMDH. Details regarding theoriginal 2006 agreement can be viewed at: https://www.afri-can.com/files/ssparagraph/f114498246/jan_19_2006.pdf.
Under the terms of the new agreement, the sampling program willcommence no later than February 14th, 2010. The new agreement with IMDHis subject to approval by the regulatory authorities. The exact date ofsampling commencement will be decided upon receipt of such approval anddisclosed to our shareholders in due course. The aim of the completesurveying and sampling program is to delineate diamond resources onAfri-Can's Block J marine diamond concession in Namibia in compliancewith National Instrument 43-101.
Furthermore, IMDH grants to Afri-Can a Charter Call Option for thecharter of one of its exploration or mining vessels exercisable byAfri-Can within a period of up to 365 days after the completion of thisCharter. The Option Vessel will be made available by the Owner subjectto availability but no later than 180 days after the exercise of theCharter Call Option, at a daily rate and for a charter period to beagreed upon between the parties at the time of signature of the charterfor the Option Vessel. In consideration of the Charter Call Option,Afri-Can shall issue 2 million of its shares to IMDH and deliver theshares within 15 days of the delivery to Afri-Can of the Option Vessel.
The agreement is subject to the approval of Canadian regulatoryauthorities. The agreement shall be effective upon reception of such anapproval but no later than 30 days following its signature.
Pierre Leveille, President and Chief Executive Officer of Afri-Can,stated, "We are pleased with this new strategic alliance with IMDH. Thenew agreement removes uncertainty with regards to the original paymentoptions and is more financially sound. Furthermore, this allianceenables Afri-Can to proceed with the delineation of resources on BlockJ and also to plan future exploration work that will permit to increasethe value of Block J and to search for new projects."
The sampling program in Block J will cover four geological Featuresand comprises a total of 332 samples. Of these, 237 are sited withinpreviously delineated targets covering 18.96 square kilometres. Theremaining 95 samples are designed to test geological formations thatare thought to be potentially diamond bearing, but have not yet beenproved as such. Details of the program are contained in the reporttitled "EPL 2499 (Block J) PHASE 3 SAMPLING, 2009" which can be viewedin the Investors/Technical Reports section of our web site at: www.afri-can.com.
IMDH is an international marine mining contractor withstate-of-the-art geophysical survey and sampling equipment. The parentcompany of IMDH owns several marine exploration and mining vessels.
Afri-Can is a Canadian company, actively involved in theacquisition, exploration and development of major mineral properties inNamibia. Afri-Can's creative and scientific approach targets largemarine diamond deposits in unexplored prospective territories.
Neither TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain "forward-looking statements,"as identified in Afri-Can's periodic fillings with Canadian SecuritiesRegulators that involve a number of risks and uncertainties. There canbe no assurance that such statements will prove to be accurate andactual results and future events could differ materially from thoseanticipated in such statements.
Shares outstanding: 163,843,234