Afri-Can Marine Minerals Corp. and Deep-South Mining (Pty.) Ltd. have engaged Jennings Capital Inc. as financial adviser and lead agent in connection with the listing of their combined 30-per-cent interest the Haib Copper project in Namibia. Afri-Can and Deep-South each own 50 per cent of the 30-per-cent interest in Haib Copper. Teck Cominco Namibia Limited, a wholly owned subsidiary of Teck Resources Limited, owns a 70-per-cent interest in Haib Copper and is the operator of the project. Teck has completed 5,000 metres of drilling on Haib Copper and is currently planning further work programs.
Deep-South and Afri-Can will transfer their interests in Haib Copper to a new entity (Newco), and will seek the listing of Newco’s common shares on a Canadian exchange and on the Namibian Stock Exchange. Upon listing of Newco, Afri-Can will transfer its interest in Newco to Afri-Can’s common shareholders.
Jennings Capital will advise Afri-Can and Deep-South with respect to enhancing shareholder value through the spinoff of their 30-per-cent interest in Haib Copper. Jennings Capital will assist in structuring the listing of Newco and will act as lead agent for financing.
The corporate structure, fiscal and legal analysis for the establishment of Newco has been completed by Deep-South and Afri-Can, and their respective legal and accounting advisers. Details of the spinoff, share dividend and listing will be finalized with Jennings and will be disclosed to investors in due course.
Newco’s listing, financing and spinoff are subject to regulatory approval.
John H. Akwenye, chairman of Deep-South, stated: “The engagement of Jennings Capital shows a strong commitment to exploration in Namibia. We are proud to be one of the first — if not the very first — Namibian exploration company to seek a listing and financing on international markets.”
Pierre Leveille, president and chief executive officer of Afri-Can, stated: “Jennings Capital’s engagement enables us to proceed with the listing of the Haib Copper project. It will allow Afri-Can to unlock the value of this project for its shareholders while we continue to focus on our marine diamond projects.”
The Haib Copper exploration licence is located in the Karas region of southern Namibia, eight kilometres from Orange River and the South African border. The Haib deposit is a copper-molybdenum deposit hosted within a quartz-feldspar porphyry. Afri-Can filed a National Instrument 43-101-compliant technical report in October, 2004, entitled, “The Haib Copper Porphyry Project, Namibia,” which is available on Afri-Can’s website.
About Deep-South
Deep-South is a Namibian private company involved in the acquisition and exploration of major precious and polymetallic mineral properties in Namibia.
About Jennings Capital
Jennings Capital is a leading independent Canadian investment dealer with offices in Toronto, Calgary and Halifax. The privately held firm provides investment banking services, equity sales and trading, and research to both large and small high-growth companies across a large geographic base in the natural resources sector.
