Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation

January 21, 2010 10:15 ET

Afri-Can: Agreement With IMDH for Sampling Block J in Namibia Approved by TSX Venture Exchange

MONTREAL, QUEBEC--(Marketwire - Jan. 21, 2010) - Afri-Can Marine Minerals Corporation (TSX VENTURE:AFA)(FRANKFURT:AJF) ("Afri-Can") announces that the agreement previously reported on December 10, 2009 regarding sampling of its 70%-owned Block J marine diamond concession in Namibia with International Mining and Dredging Holding Ltd. ("IMDH") has been amended and has been approved by the TSX Venture Exchange.

The salient features of the agreement are summarized as follows:

- The charter cost of the sampling program is estimated to cost US$1.8 million, of which $900,000 is to be paid on the departure of the vessel and the balance within 30 days of completion of the program. This payment arrangement replaces the payment terms of the original agreement signed and announced on January 19th, 2006.

- Afri-Can grants IMDH 12.5 million warrants to purchase common shares of Afri-Can at an exercise price of CDN $0.20 per share until June 15th, 2010 as payment for accrued liabilities of $424,000 and for the acquisition of data from IMDH's 2007 Topas geophysical survey amounting to $528,410.64, for a total consideration of $ 952,410.64. The warrant consideration in the agreement signed and announced on December 10th, 2009 has been amended accordingly.

- IMDH grants to Afri-Can a Charter Call Option, exercisable by Afri-Can within a period of up to 365 days after the completion of this Charter, to charter another one of its exploration or mining vessels. The Option Vessel will be made available by IMDH subject to availability but no later than 180 days after the exercise of the Charter Call Option, and at a daily rate and for a charter period to be agreed upon between the parties at the time of signature of the charter for the Option Vessel. In consideration for the Charter Call Option, Afri-Can will issue 2 million common shares to IMDH and will deliver the shares within 15 days of the delivery to Afri-Can of the Option Vessel.

Under the terms of the agreement, the sampling program will commence no later than February 14th, 2010. The exact date of sampling commencement will be decided in the coming days and will be communicated to shareholders forthwith. The aim of the complete surveying and sampling program is to delineate diamond resources on Afri-Can's Block J marine diamond concession in Namibia in compliance with National Instrument 43-101.

The sampling program to be undertaken on Block J will cover four geological Features and will comprise a total of 332 samples. Of these, 237 are sited within previously delineated targets covering 18.96 square kilometres. The remaining 95 samples are designed to test geological formations that are thought to be potentially diamond bearing, but have not yet been proved as such. Details of the program are contained in the report titled "EPL 2499 (Block J) PHASE 3 SAMPLING, 2009" which can be viewed in the Investors/Technical Reports section of our web site at:

IMDH is an international marine mining contractor with state-of-the-art geophysical survey and sampling equipment. The parent company of IMDH owns several marine exploration and mining vessels.

On another matter, the Board of Directors has granted options to purchase one hundred and forty thousand common shares at 23 cents per share to two Directors of Afri-Can. These options are exercisable until January 20th, 2015.

Afri-Can is a Canadian company, actively involved in the acquisition, exploration and development of major mineral properties in Namibia. Afri-Can's creative and scientific approach targets large marine diamond deposits in unexplored prospective territories.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains certain "forward-looking statements," as identified in Afri-Can's periodic fillings with Canadian Securities Regulators that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Shares outstanding: 164,569,818

Contact Information

  • Afri-Can Marine Minerals Corporation
    Pierre Leveille
    President & CEO
    514-846-1435 (FAX)
    Afri-Can Marine Minerals Corporation
    Bernard J. Tourillon
    Executive V.P. and CFO
    514-846-1435 (FAX)