Afri-Can Marine Minerals Corp. has signed a new agreement regarding sampling of its 70-per-cent owned block J marine diamond concession in Namibia with International Mining and Dredging Holding Ltd. (IMDH). The new agreement replaces the original agreement signed and announced in Stockwatch on Jan. 19, 2006. Important changes in 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 per cent into Afri-Can shares. IMDH will no longer have the option to convert the cost of the program marked up by 40 per cent into a new Namibian company, to be 51 per cent owned by IMDH, that would own 70 per cent of block J.IMDH will no longer have the option to convert the cost of the program marked up by 40 per cent into a direct 51-per-cent holding of the block J joint venture.
In consideration for cancellation of the payment options set out in the original agreement, Afri-Can will grant IMDH 12.5 million warrants to purchase common shares of Afri-Can at an exercise price of 20 cents per share until June 15, 2010.
The cost of the sampling program remains unchanged at an estimated $1.8-million (U.S.). Half of charter cost is to be paid on departure of the vessel and the balance within 30 days of completion of the program.
- 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 per cent into Afri-Can shares.
- IMDH will no longer have the option to convert the cost of the program marked up by 40 per cent into a new Namibian company, to be 51 per cent owned by IMDH, that would own 70 per cent of block J.
- IMDH will no longer have the option to convert the cost of the program marked up by 40 per cent into a direct 51-per-cent holding of the block J joint venture.
- In consideration for cancellation of the payment options set out in the original agreement, Afri-Can will grant IMDH 12.5 million warrants to purchase common shares of Afri-Can at an exercise price of 20 cents per share until June 15, 2010.
- The cost of the sampling program remains unchanged at an estimated $1.8-million (U.S.). Half of charter cost is to be paid on departure of the vessel and the balance within 30 days of completion of the program.
The new agreement reflects the change in vessel from the MV Mare Oceano in the original 2006 agreement to the MV Explorer which was subsequently acquired and converted by IMDH. Details regarding the original 2006 agreement can be viewed at the Afri-Can website.
Under the terms of the new agreement, the sampling program will commence no later than Feb. 14, 2010. The new agreement with IMDH is subject to approval by regulatory authorities. The exact date of sampling commencement will be decided upon receipt of such approval and disclosed to the shareholders in due course. The aim of the complete surveying and sampling program is to delineate diamond resources on Afri-Can’s block J marine diamond concession in Namibia in compliance with National Instrument 43-101.
Furthermore, IMDH grants to Afri-Can a charter call option for the charter of one of its exploration or mining vessels exercisable by Afri-Can within a period of up to 365 days after the completion of this charter. The option vessel will be made available by the owner subject to availability but no later than 180 days after the exercise of the charter call option, at a daily rate and for a charter period to be agreed upon between the parties at the time of signature of the charter for the option vessel. In consideration of the charter call option, Afri-Can shall issue two million of its shares to IMDH and deliver the shares within 15 days of the delivery to Afri-Can of the option vessel.
Pierre Leveille, president and chief executive officer of Afri-Can, stated: “We are pleased with this new strategic alliance with IMDH. The new agreement removes uncertainty with regards to the original payment options and is more financially sound. Furthermore, this alliance enables Afri-Can to proceed with the delineation of resources on block J and also to plan future exploration work that will permit to increase the value of block J and to search for new projects.”
The sampling program in block J will cover four geological features and comprises a total of 332 samples. Of these, 237 are sited within previously delineated targets covering 18.96 square kilometres. The remaining 95 samples are designed to test geological formations that are thought to be potentially diamond-bearing, but have not yet been proved as such. Details of the program are contained in the report titled EPL 2499 (block J) phase 3 sampling, 2009, which can be viewed in the investors/technical reports section of Afri-Can’s website.
