Dear xxx,
The vessel was effectively under contract with Namdeb for 3 months, which as been extended to 3 1/2 months. The vessel is ready and available since it has termintaed Namdeb's contract 10 days ago. The contract for the vessel is in place and agreed by both parties.
However, we have first to finalize the re-negotiation of the acquisition agreement for EP' 3403 before resuming work on this concession.As publicly disclosed, the agreement was stating that we had to spend a first $ 2 million to acquire 20% of the EPL and we were having 90 days after the sampling completion to raise another $ 3.5 million toget the balance of 80%. Since that we have decided to carry out a geophysical survey before resuming sampling and that this was not included in the agreement, we had to re-position the acquisition agreement. The amount spend on the survey is a lot smaller than the $ 3.5 million originally stated and that was prolonging the timing for resuming the sampling. Therefore, we had to amend the agreement. During the disucssions we came to conclusion that it was better to change the complete agreement to set it on better terms for both parties. We have recently agreed on a very good new amneded agreement and it is now being revised and completed by our respective lawyers in order to secure the agreement vis a vis the rules in place. This agreement is very good and it will be signed and announced pretty soon. The geophysical work will start soon after the signature of this new agreement.
The work will happen and there is no legal matters stopping it apart the new acquisition agreement. It is just good business sense to not spend funds on a project when the contracts are not clear. Furthermore, there is no other matters pending such as permits, personnel etc.
The work will be carried out and will be finalized as planned.
All is cleard out and it is not administrative processes that are slow but legal processes. In today's world, the markets wants to see very quick action and on the other side the regulatory environment is heavier and slower than ever in the past. It is very important that all dealings are safely checked in ordr to avoid surprises in the future.
The lsiting of Haib is adavncing very well also and we will have many developments in the short term.
Haib copper is a great asset and value for our shareholders. Afri-Can's part is currently evaluated at between $ 12 to $ 15 million and it is a serious leverage for the company and its shareholders that is providing very good funding options and will enable to give a nice return to shareholders and will help to unlock value.
Kind regards
Pierre Leveille
President & CEO
Afri-Can Marine Minerals Corp.
1801 Mc Gill College Avenue, # 1325,
Montreal, Qc. Canada
H3A 2N4
Tel: 1-514-846-2133
Cel: 1-819-437-9864