Afri-Can Marine Reaches Agreement for Development & Mining of Diamond Fields Mining Lease 111 & EPL 3403 Off Coast of Namibia
05 Dezember 2013 - 3:58PM
Marketwired
Afri-Can Marine Reaches Agreement for Development and Mining of
Diamond Fields Mining Lease 111 and EPL 3403 Off Coast of Namibia
MONTREAL, QUEBEC--(Marketwired - Dec 5, 2013) - Afri-Can Marine
Minerals Corporation ("Afri-Can") (TSX-VENTURE:AFA) announces that
it has signed a Memorandum of Understanding with International
Mining and Dredging Holding Ltd ("IMDH") for the development and
mining of the Mining Leases ("ML") under option with Diamond Fields
International Ltd ("DFI") and of the Exclusive Prospecting License
("EPL") 3403, both situated off the coast of Namibia (see Map
1).
Salient features of the Memorandum of Understanding are:
- IMDH will design and operate a large sampling program of up to
800 samples mainly on ML 111 and, to a lesser extent, on EPL 3403.
The sampling program will serve to establish mining blocks and
grades in preparation for mining and to upgrade some of the NI
43-101 inferred resources to the indicated category, as well as
further the development of EPL 3403. Afri-Can will fund the program
on or before March 1st, 2014. Budgets will be prepared by IMDH and
approved by Afri-Can. The Company is currently revising various
options in order to raise the funds needed;
- Afri-Can and IMDH will create a joint-venture company, which
will fund and operate the mining program on ML 111 and EPL 3403 if
deemed economically viable. IMDH will fund the preparation of the
mining vessel and Afri-Can will fund the vessel operating costs for
the 3 first months of the mining program;
- Afri-Can and IMDH will share equally in the net profits from
production after payment of 10% of the net profits to DFI and 10%
of the net profits to Woduna Mining Holding (PTY) Ltd.;
- Afri-Can is currently preparing a pre-feasibility study and a
preliminary economic assessment (PEA). IMDH will prepare the mining
plan from the PEA and from the results of the sampling
program;
- The first funding phase of the program will include a payment
of US$350,000 to IMDH by Afri-Can, which is due from the last
sampling program on EPL 3403 carried out in December 2012. Afri-Can
will also deposit US$500,000 with AfrAsia Corporate Finance
(Africa) Limited, the first US$200,000 of which will be paid to
IMDH in order to complete the transfer of ownership of the
remaining 80% of the shares of Thyme Investment (PTY) Ltd
("Thyme"), the owner of EPL 3403. The balance of US$300,000 will
serve as a deposit for the funding of the sampling program;
- Upon payment of the US$200,000 to IMDH, Afri-Can will complete
the acquisition of all the shares of Thyme and in accordance with
the agreement signed with IMDH on September 27th 2010, Afri-Can
will issue 9,750,000 of its common shares to IMDH and 3,250,000 of
its common shares to BV Investment (PTY) Ltd. Afri-Can will then
hold 100% of EPL 3403.
Afri-Can's immediate goal is to focus on ML 111's existing
resources in order to resume production in the shortest time frame
possible. There are also several other features, additional to
those containing resources, within the four DFI leases that hold
potential for diamond mineralisation but have been insufficiently
sampled, and these features will be investigated. The second goal
is to complete the sampling program on EPL 3403, which remains a
high priority exploration target.
Pierre Léveillé, President and CEO of Afri-Can, stated that, "We
are very pleased with this agreement as it gets us to a level that
will allow mining and provide regular development and value for our
shareholders. The DFI portfolio of Mining Leases complements EPL
3403 and offers very good development potential. We feel that we
are sitting in a strong project in a very solid industry."
About ML 111
ML 111 lies between 5 and 20 kilometres north of Luderitz. It
covers 312 square kilometres and sits in water ranging from 30 to
70 metres in depth. ML 111 hosts at least 3 mineralised geological
features. The ML was originally granted for a period of 15 years
and is renewable on December 4th, 2015. A recent NI 43-101 report
estimates 413,000 carats of indicated diamond resources and 453,000
carats of inferred diamond resources remain on ML 111. A portion of
the indicated resources, some 255,000 carats grading at 0.30 carats
per square metre, will be the first focus for mining development.
The company is currently preparing a pre-feasibility study and a
PEA on this resource and until the study is completed it is
uncertain that the resource will prove to be economic.
The resource exists in the Marshall Fork, Staple Basin/Conical
Beach and Diaz Reef areas. DFI produced intermittently between 2001
and 2007 some 158,200 carats, mainly from the Marshall Fork area.
Special stones recovered from Marshall Fork included a gem quality
17.42 carat stone, a rare 5.26 carat light blue diamond which sold
for US$10,457 per carat, and a 2.45 carat pink gem diamond which
sold for US$16,771 per carat. DFI ceased production following the
world financial crisis.
About EPL 3403
EPL 3403 covers 800 square kilometres and is adjacent to the
Atlantic One deposit (operated by De Beers Marine), which is the
world's largest marine diamond deposit with a resource estimated at
about 100 million carats. Previous sampling on EPL 3403 by Afri-Can
and IMDH discovered 3 diamond deposits and recovered 117 diamonds.
The 4 largest diamonds were of 2.69, 1.76, 1.60 and 1.30 carats.
Several stones weighed over 0.50 carats. The average diamond sizes
found in EPL 3403 are similar to those in adjacent concessions.
Richard Foster, B.Sc. (Hons. Geology), Pr. Sci. Nat., is the
Qualified Person who has prepared the NI 43-101 report, reviewed
this press release and is responsible for the technical part of
this press release, and is the designated Qualified Person under
the terms of National Instrument 43-101.
About Afri-Can Marine Minerals Corporation
Afri-Can is a Canadian company, actively involved in the
acquisition, exploration and development of major mineral
properties in Namibia. Afri-Can's creative and scientific approach
targets large marine diamond deposits in prospective
territories.
This press release contains certain "forward-looking
statements," as identified in the Afri-Can's periodic filings with
Canadian Securities Regulators that involve a number of risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Neither the 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.
Shares outstanding: 91,527,864
To view Map 1 please click on the following link:
http://media3.marketwire.com/docs/AFA1205.pdf
Afri-Can Marine Minerals CorporationPierre Leveille, President
& CEO(514) 846-2133Afri-Can Marine Minerals CorporationBernard
J. Tourillon, Executive V.P. and CFO(514) 846-2133TOLL FREE North
America: 1 (866) 206-7475(514)
372-0066info@afri-can.comwww.afri-can.com
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