Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation

December 10, 2009 11:36 ET

Afri-Can Amends Agreement With IMDH for Sampling Block J in Namibia

MONTREAL, QUEBEC--(Marketwire - Dec. 10, 2009) - Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA)(FRANKFURT:AJF) is pleased to announce that it has signed a new agreement regarding sampling of its 70% owned Block J marine diamond concession in Namibia with International Mining and Dredging Holding Ltd. ("IMDH"). The new agreement replaces the original agreement signed and announced on January 19th, 2006. Important changes in the new agreement are:

- The cost of the program will be paid by Afri-Can in cash:

-- IMDH will no longer have the option to convert the cost of the program marked up by 40% into Afri-Can shares,

-- IMDH will no longer have the option to convert the cost of the program marked up by 40% into a new Namibian company, to be 51% owned by IMDH, that would own 70% of Block J,

-- IMDH will no longer have the option to convert the cost of the program marked up by 40% into a direct 51% holding of the Block J joint venture.

- In consideration for cancellation of the payment options set out in the original agreement, Afri-Can will grant 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.

- The cost of the sampling program remains unchanged at an estimated US$1.8 million. Half of charter cost is to be paid on departure of the vessel and the balance within 30 days of completion of the program.

The new agreement reflects the change in vessel from the MV Mare Oceano in the original 2006 agreement to the MV Explorer which was subsequently acquired and converted by IMDH. Details regarding the original 2006 agreement can be viewed at:

Under the terms of the new agreement, the sampling program will commence no later than February 14th, 2010. The new agreement with IMDH is subject to approval by the regulatory authorities. The exact date of sampling commencement will be decided upon receipt of such approval and disclosed to our shareholders in due course. 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.

Furthermore, IMDH grants to Afri-Can a Charter Call Option for the charter of one of its exploration or mining vessels exercisable by Afri-Can within a period of up to 365 days after the completion of this Charter. The Option Vessel will be made available by the Owner subject to availability but no later than 180 days after the exercise of the Charter Call Option, 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 of the Charter Call Option, Afri-Can shall issue 2 million of its shares to IMDH and deliver the shares within 15 days of the delivery to Afri-Can of the Option Vessel.

The agreement is subject to the approval of Canadian regulatory authorities. The agreement shall be effective upon reception of such an approval but no later than 30 days following its signature.

Pierre Leveille, President and Chief Executive Officer of Afri-Can, stated, "We are pleased with this new strategic alliance with IMDH. The new agreement removes uncertainty with regards to the original payment options and is more financially sound. Furthermore, this alliance enables Afri-Can to proceed with the delineation of resources on Block J and also to plan future exploration work that will permit to increase the value of Block J and to search for new projects."

The sampling program in Block J will cover four geological Features and comprises 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.

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: 163,843,234

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)