Afri-Can Marine Minerals Corp. has amended the agreement previously reported in Stockwatch on Dec. 10, 2009, regarding sampling of its 70-per-cent-owned Block J marine diamond concession in Namibia with International Mining and Dredging Holding Ltd. (IMDH), and the amended agreement has been approved by the TSX Venture Exchange.
The salient features of the agreement are summarized as follows:
The charter cost of the sampling program is estimated to cost $1.8-million (U.S.), of which $900,000 (U.S.) is to be paid on the departure of the vessel and the balance within 30 days of completion of the program. This payment arrangement replaces the payment terms of the original agreement, signed and announced in Stockwatch on Jan. 19, 2006. Afri-Can grants 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, as payment for accrued liabilities of $424,000 and for the acquisition of data from IMDH’s 2007 Topas geophysical survey amounting to $528,410.64, for a total consideration of $952,410.64. The warrant consideration in the agreement signed and announced in Stockwatch on Dec. 10, 2009, has been amended accordingly. IMDH grants to Afri-Can a charter call option, exercisable by Afri-Can within a period of up to 365 days after the completion of this charter, to charter another one of its exploration or mining vessels. The option vessel will be made available by IMDH subject to availability but no later than 180 days after the exercise of the charter call option, and 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 for the charter call option, Afri-Can will issue two million common shares to IMDH and will deliver the shares within 15 days of the delivery to Afri-Can of the option vessel.
- The charter cost of the sampling program is estimated to cost $1.8-million (U.S.), of which $900,000 (U.S.) is to be paid on the departure of the vessel and the balance within 30 days of completion of the program. This payment arrangement replaces the payment terms of the original agreement, signed and announced in Stockwatch on Jan. 19, 2006.
- Afri-Can grants 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, as payment for accrued liabilities of $424,000 and for the acquisition of data from IMDH’s 2007 Topas geophysical survey amounting to $528,410.64, for a total consideration of $952,410.64. The warrant consideration in the agreement signed and announced in Stockwatch on Dec. 10, 2009, has been amended accordingly.
- IMDH grants to Afri-Can a charter call option, exercisable by Afri-Can within a period of up to 365 days after the completion of this charter, to charter another one of its exploration or mining vessels. The option vessel will be made available by IMDH subject to availability but no later than 180 days after the exercise of the charter call option, and 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 for the charter call option, Afri-Can will issue two million common shares to IMDH and will deliver the shares within 15 days of the delivery to Afri-Can of the option vessel.
Under the terms of the agreement, the sampling program will commence no later than Feb. 14, 2010. The exact date of sampling commencement will be decided in the coming days and will be communicated to shareholders in Stockwatch forthwith. 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.
The sampling program to be undertaken on Block J will cover four geological features and will comprise 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 and technical reports section of Afri-Can’s website.
IMDH is an international marine mining contractor with state-of-the-art geophysical survey and sampling equipment. The parent company of IMDH owns several marine exploration and mining vessels.
On another matter, the board of directors has granted options to purchase 140,000 common shares at 23 cents per share to two directors of Afri-Can. These options are exercisable until Jan. 20, 2015.
