Afri-Can Marine Minerals Corp. will proceed with and close a non-brokered private placement for gross proceeds of a maximum of $200,000. Afri-Can has received commitments for the full amount of $200,000.
The non-brokered private placement will comprise five million units of Afri-Can, at a subscription price of four cents per unit. Each unit will consist of one common share and one-half common share purchase warrant of Afri-Can. The warrants will expire in two years from the date of closing of the private placement. Each full warrant will entitle the holder thereof to purchase one Afri-Can common share at an exercise price of six cents during the first year from the date of closing of the placement and at an exercise price of 10 cents per common share during the second year from the date of closing of the placement. Jennings Capital Inc. will be paid a finder’s fee of $4,000 and will receive 100,000 compensation warrants in connection with the non-brokered placement. The compensation warrant have the same terms and condition as the warrant. Each security issued pursuant to the placement has a mandatory four months holding period from the date of closing of the placement.
Afri-Can intends to use the net proceeds of the offering to maintain Afri-Can’s assets, for debt repayment and for working capital purposes. Completion of the offering is subject to the receipt of all necessary approvals including the approval TSX Venture Exchange. Approval of the sale of the common share portion of the offering is being sought pursuant to the TSX-V’s notice to issuers dated April 12, 2013, regarding the extension and modification of temporary relief from certain pricing requirements.
Project development
Afri-Can’s technical team is well advanced with the revision and assessment of the extensive database and work programs planned for the mining leases under option with Diamond Fields International Ltd. (DFI). The main goal is to resume production as soon as possible. Some areas will need further exploration such as geophysical surveying and sampling in order to properly define the resource and establish a definitive mining plan. Afri-Can’s priority is to identify the areas that could resume mining in the shortest time frame and plan a resource development work program for the remaining parts of the DFI mining leases. To that effect, Afri-Can is conducting negotiation and work planning with its contractor in order to charter a mining vessel and subsequently, a sampling vessel. Complete information will be disclosed to the company’s investors as soon as the assessment is concluded.
