Key points
- Deep-South must spend $1-million (U.S.) in cumulative exploration expenditures on the EPL over the next three years to earn its 60-per-cent interest.
- Upon listing on the TSX Venture Exchange or another agreed exchange, Deep-South will issue Teck 500,000 common shares and 500,000 share purchase warrants exercisable at 125 per cent of the listing price, maturing 24 months after listing.
- The Zebrafontein EPL (EPL 3949) sits in the Karas region, eight kilometres northeast of the Rosh Pinah zinc mine and 10 kilometres northeast of the Skorpion zinc mine.
- Afri-Can and Deep-South are combining the Zebrafontein option and Teck’s 30-per-cent Haib copper project interest into a new jointly owned company to be listed, with Afri-Can shares distributed to its shareholders as a dividend.
Afri-Can Marine Minerals Corp. has learned that Deep-South Mining Pty. Ltd. has signed an option agreement with Teck Namibia Ltd., a wholly owned subsidiary of Teck Resources Ltd., to earn an undivided interest of 60 per cent in the Zebrafontein exploration and prospecting licence (EPL) in southern Namibia.
The terms of the agreement stipulate that Deep-South shall incur cumulative exploration expenditures of $1-million (U.S.) on the EPL during the next three years. Furthermore, upon listing of its shares on the TSX Venture Exchange or any other exchange as agreed between Deep-South and Teck, Deep-South shall issue to Teck 500,000 common shares and 500,000 share purchase warrants exercisable at a price equal to 125 per cent of the listing price and maturing 24 months after the listing date.
The Zebrafontein EPL (EPL 3949) is located in the Karas region of southern Namibia. The EPL is situated eight kilometres northeast of the Rosh Pinah lead-zinc mine, producing 105,000 tonnes of zinc concentrate annually, and 10 kilometres northeast of the Skorpion lead-zinc mine, producing 150,000 tonnes of special high-grade zinc annually. The EPL is also situated 13 kilometres northwest of the historic Lorelei copper prospect and 120 kilometres to the northwest of the Haib porphyry-copper deposit.
Previous exploration work conducted by Teck includes geophysical surveys, geological mapping, stream sediment sampling and detailed soil geochemistry. Stream sediment sampling completed by Teck has shown anomalous levels of copper and zinc in a number of areas within the southern portion of the EPL. The exploration results and analysis indicate that the Rosh Pinah formation could extend onto the western portion of the Zebrafontein EPL beneath Quaternary cover. Furthermore, in the southwest portion of the EPL, magnetic mapping combined with anomalous copper stream sediment samples suggest potential for porphyry-copper-style mineralization similar to the Haib deposit.
An NI 43-101 qualifying report is currently under revision and will be disclosed publicly upon completion.
The agreement is subject to regulatory approval.
As previously announced on Aug. 17, 2011, Afri-Can and Deep-South are reorganizing their relationship by establishing and listing a new company equally owned by Deep-South and Afri-Can. The 30-per-cent interest in the Haib copper project (Teck owns 70 per cent) and the Zebrafontein option will be transferred to the new company. Upon listing of the new company, Afri-Can will transfer its common shares of the new company to Afri-Can’s common shareholders through a share dividend payment. Details of the new corporate structure will be disclosed when application is made to list the shares.
John Akwenye, chairman of Deep-South, stated that: “We are very happy with this agreement as we add some interesting exploration potential to our assets and add value for our upcoming listing. This agreement was needed to proceed with our listing and for Afri-Can to proceed with the share dividend to its shareholders.”
Vivian Stuart-Williams is responsible for the technical part of this press release and is the designated qualified person under the terms of National Instrument 43-101.
