Afri-Can Marine Minerals Corp. and International Mining and Dredging Holding Ltd. (IMD) have fulfilled all of the conditions of the agreement which was put before Afri-Can’s shareholders at its annual gneral meeting held on Feb. 23, 2006. Shareholders of Afri-Can voted 99.8 per cent in favour of the agreement with IMD to resume diamond exploration on marine concession block J in Namibia. The agreement was previously announced on Jan. 19, 2006 in Stockwatch.
Afri-Can and IMD will now finalize the planning and scheduling of the block J exploration program. Upon completion of this program, Afri-Can will be in a position to delineate diamond resources on block J in compliance with the national instrument 43-101.
The exploration program is planned in two phases: phase 1 will be to carry out a geophysical survey totalling up to 3,100 lines/kilometre and phase 2 will be to retrieve 319 large samples over the sampling target areas called features F, H & J. Work is scheduled to begin in the first half of 2006, and will continue for approximately 12-months. The final schedule and details for the program will be disclosed in the coming weeks.
IMD is an international marine mining contractor with state-of-the-art geophysical survey and sampling equipment. The parent company of IMD owns several marine exploration and mining vessels, including the mv Ya Toyvo that has been successfully operating diamond-mining projects in Namibian territorial waters for over six years. The vessel designated to conduct the exploration program on block J is the mv Mare Oceano. She has a gross tonnage of 2,033 tons and is equipped with DGPS positioning system as well as advanced survey and geotechnical equipment. The vessel will be equipped with a two-square-metre sampling tool and a dense media separation plant with a capacity of 10 tons per hour.
Pierre Leveille, president and chief executive officer of Afri-Can, stated: “We are pleased with this agreement as it enables Afri-Can to resume exploration on its most prospective marine diamond area with one of the leading marine mining contractors. Furthermore, the high percentage of votes in favour of the agreement shows strong support from our shareholders.”
As a result of the decision to resume exploration activities, Afri-Can will proceed with private placement agreements for a maximum amount of $2.85-million.
The private placement will comprise a maximum of 19 million units priced at 15 cents per unit. Each unit consists of one share and one-half of one non-transferable warrant. Each full warrant will entitle the holder to purchase one common share at 20 cents within two years from the date of closing. The common shares and warrants comprising the units are subject to a hold period of four months following the closing date.
The private placement is subject to regulatory approval.
Proceeds from the private placement will be used for the sampling program in block J and to further the development of the corporation.
