Key points
- EPL 3403 covers about 800 square kilometres roughly 120 kilometres south of Luderitz, adjacent to Namdeb’s Atlantic One mining lease ML 47, the largest marine diamond deposit in the world.
- Afri-Can will issue 48.75 million shares to IMDH and 16.25 million shares to BVI, a total of 65 million shares, to acquire Thyme Investments, which owns EPL 3403.
- Historic work programs on EPL 3403 cost about $9-million (U.S.), and 14 of 199 samples returned 23 stones ranging from 0.07 to 2.69 carats.
- Closing is conditional on Afri-Can raising a minimum of $5.5-million (U.S.) before Dec. 31, 2010, and on approval by the TSX Venture Exchange.
Afri-Can Marine Minerals Corp. has entered into an agreement to acquire 100 per cent of the exploration and prospecting licence 3403 (EPL 3403) from International Mining and Dredging Holding Ltd. (IMDH) and BV Investments Four Hundred and Nine (Pty.) Ltd. (BVI) in exchange for 65 million common shares of Afri-Can. EPL 3403 is situated about 120 kilometres south of Luderitz in Namibia.
About EPL 3403
EPL 3403 covers about 800 square kilometres and is adjacent to the north of the Atlantic One mining lease (ML) 47 (owned by Namdeb Diamond Corp. (Pty.) Ltd., a 50-to-50 partnership between the government of the Republic of Namibia and De Beers Centenary AG), which is the largest marine diamond deposit in the world. ML 47 is currently producing in excess of 1.1 million carats per year. EPL 3403 is contiguous with ML 128 and is close to ML 43 and ML 44. Namdeb recently announced that it will spend $175-million (U.S.) to increase the diamond resources in ML 43 by 68 million carats. Thus, EPL 3403 is well positioned relative to surrounding properties.
IMDH holds a 75-per-cent interest in EPL 3403, and BVI has a 25-per-cent interest. Over the past three years, IMDH has conducted a reconnaissance geophysical survey, a regional geophysical survey with 113 vibracore samples, reconnaissance sampling and a localized regional sampling program.
Expenditures on the historic work programs on EPL 3403 amount to about $9-million (U.S.).
Various geological features have been identified in EPL 3403. One-hundred ninety-nine samples of five square metres have been extracted, with 14 samples returning 23 stones ranging between 0.07 and 2.69 carats. The four largest stones weighed 0.80, 1.19, 1.20 and 2.69 carats. Multiple stones were found in five samples, one of which contained six stones. In one area in the south, eight positive samples had an average size of 0.80 carat per stone, which is comparable with results from Namdeb’s ML 47.
About the agreement
EPL 3403 is wholly owned by Thyme Investments (Pty.) Ltd. (Thyme), which is owned by IMDH and BVI. Afri-Can will acquire 100 per cent of Thyme by issuing from treasury 48.75 million Afri-Can common shares to IMDH and 16.25 million Afri-Can common shares to BVI, for a total issuance of 65 million shares. At that time, IMDH shall have right to appoint two directors to the board of directors of Afri-Can.
Closing of the sale of EPL 3403 is conditional upon Afri-Can raising a minimum of $5.5-million (U.S.) before Dec. 31, 2010.
Upon completion of the acquisition of EPL 3403, Afri-Can will commence a resource-delineation program. This program will include regional and local sampling programs and detailed geophysical survey and vibracoring on certain specific features. Thereafter, Afri-Can will proceed with detailed sampling in order to delineate diamond resources and prepare for trial mining. Details of the programs will be disclosed to the company’s shareholders in due course.
The vessel MV DP the Explorer will be made available by IMDH for the sampling program. IMDH will also make other vessels and its technical expertise available, as required. In the company’s sampling program on block J this year, the Explorer has proven to be very efficient and is the ultimate vessel for future sampling programs.
The agreement is subject to approval by the TSX Venture Exchange.
Pierre Leveille, president and chief executive officer of Afri-Can, stated: “We are delighted with this transaction. EPL 3403 sits in the middle of the most productive marine diamond field in the world. It brings substantial development potential and is another quality asset to add to block J and adds serious value for our shareholders. Furthermore, this transaction solidifies our strategic alliance with IMDH, who have a proven track record in the marine sampling and mining industry.”
About block J
The National Instrument 43-101 report on block J is nearing completion. The first sampling program of the Explorer, with its state-of-the-art technology, has generated an abundance of detailed data, rendering the compilation and analysis more complex than with earlier systems. In addition to the volume of data to be handled, geological observations have indicated variations in local geological models compared with previously published versions. As an example, the former basal Miocene unit that forms a small scarp in Features 8, 17 and 19 is now considered to be Eocene in age. This new information has allowed a revision and enhancement of local geological models, which is fundamental to the diamond-resource evaluation process.
Richard W. Foster is responsible for the technical part of this press release and is the designated qualified person under the terms of National Instrument 43-101.
