Afri-Can Marine Minerals has entered into an agreement with Ototinana Regional Marine Mineral Exploration Pty. Ltd. (ORMME) whereby ORMME will acquire a direct interest in the capital of Afri-Can. ORMME, a Namibian not-for-profit corporation, is directly owned by four regional councils representing the Oshikoto, Ohangwena, Oshana and Omusati regions. ORMME, which has been created to promote social and economic development, will assist Afri-Can to implement development initiatives in these regions, which have important social and economic upliftment needs. These regional councils, which constitute the local government of the cited regions, represent more than 50 per cent of Namibia’s population.
In terms of the agreement, Afri-Can will issue to ORMME 2.5 million common shares of Afri-Can and, in counterpart, Namibia’s ministry of mines and energy has agreed to grant Afri-Can relinquishment relief in respect of all its concessions which involve joint ventures with Namibians. This non-reduction in concession areas will be valid for the next five years.
Also, the agreement stipulates that:
ORMME will have the right but not the obligation to maintain or increase its interest in Afri-Can, on terms and conditions acceptable to Afri-Can’s board of directors.
ORMME will be entitled to one representative on the board of directors of Afri-Can, with future board representation determined in proportion to its shareholding percentage in Afri-Can.
Afri-Can has agreed to finance a special good will grant, equivalent to 1 per cent of its annual gross sales, upon commencement of commercial production of diamonds from its Namibian marine concessions. The funds generated will be invested in specific social programs recommended by ORMME, subject to specific conditions, including regular audits by Afri-Can’s auditors.
Afri-Can has agreed to invest a minimum of 5 per cent of its exploration expenditures in training and empowerment programs related to its mining ventures.
The transaction is subject to all necessary regulatory approvals.
Pierre Leveille, president of Afri-Can, stated, “We are very proud of this transaction, which is a first in Namibia, as it will strengthen our involvement in Namibia and increase the participation of Namibians in our projects.”
