Afri-Can Marine Minerals Corp. has closed a second tranche of $1-million of the brokered private placement announced on April 12 and April 20, 2012, through Trinity Assets Management International Ltd. The closing of a further $1-million related to the brokered placement is expected shortly. The corporation also raised an additional $435,480 by way of a non-brokered private placement. To date, the corporation has raised total gross proceeds of $2,435,480 from private placements.
The second tranche of the brokered placement consists of 6.25 million units of Afri-Can, at a subscription price of 16 cents each. The non-brokered placement consists of 2,721,750 units. Each unit consists of one common share of Afri-Can’s capital and one common share purchase warrant of the corporation. Each warrant entitles the holder thereof, during a period of 36 months from the date of closing of the placements, to purchase one common share at an exercise price of 20 cents per common share.
The corporation will pay Trinity a finder’s fee of $50,000 in connection with the brokered placement and has paid Jennings Capital Inc. a finder’s fee of $34,838 and issued 217,740 compensation warrants in connection with the non-brokered placement. The compensation warrant has the same terms and condition as the warrant. Each security issued pursuant to the placements has a mandatory four-month hold period from the date of closing of the placements. The closing of these placements remains subject to the approval of the exchange.
The subscription of $1-million consisting of the second tranche of the brokered placement has been provided by the same investor who provided the first tranche of $1-million (see press release dated July 6, 2012). As a result, the total holding of this investor now exceeds 10 per cent of Afri-Can’s issued and outstanding common shares. Such investor is now deemed to be an insider of the corporation and the second $1-million subscription has been closed “in trust” subject to exchange acceptance.
Regarding EPL 3403, geophysical survey analysis and interpretation are well advanced and an initial report is being prepared. The data’s high quality and resolution enabled modelling of the geology, morphology and stratigraphy of the south end of EPL 3403 in greater detail than previously planned. This is expected to lead to improved preparation and planning for the second sampling program and eventual trial mining. The second sampling program scheduled will be finalized after closing of the brokered placement.
