Afri-Can Marine Minerals Corp. has reached agreement with International Mining and Dredging Holding Ltd. (IMDH) to start a geophysical survey on exclusive prospecting licence (EPL) 3403 marine diamond concession in Namibia on or about April 28, 2012.
Afri-Can has chartered the vessel SP Star from IMDH to carry out a geophysical survey that will cover a maximum of 1,400 line kilometres, which will require about 16 days. The survey will cover 90 square kilometres in the south end of EPL 3403, and will cover depositional areas 1, 2 and 3 already delineated by previous sampling programs. The goal of the geophysical survey is to model accurately the geology and delineate the boundaries of the deposits in order to prepare for a second sampling phase. The second sampling phase will allow resources estimation in anticipation of subsequent trial mining.
Afri-Can holds an option to acquire 100 per cent of the shares of Thyme Investments (Pty.) Ltd., the owner of 100 per cent of EPL 3403. Afri-Can will earn a first 20 per cent in Thyme by issuing 20 per cent of its 65 million shares to Thyme and carrying out a geophysical survey. Afri-Can will earn the remaining 80 per cent of Thyme by completing a sampling program and issuing the balance of 80 per cent of its 65 million shares to Thyme.
EPL 3403 covers approximately 800 square kilometres, and is adjacent to and north of the Atlantic One mining lease (ML) 47 (owned by Namdeb Diamond Corp. (Pty.) Ltd., a 50/50 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 currently produces in excess of 1.1 million carats per year.
On another matter, Afri-Can and Trinity Assets Management International Ltd. of Mauritius have agreed that the private placement previously announced on April 12, 2012, will be a brokered private placement and that Trinity shall be entitled to a cash remuneration equal to 5 per cent of the gross proceeds of the private placement.
