Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation

April 12, 2012 09:17 ET

Afri-Can Announces $3 Million Financing

MONTRÉAL, QUÉBEC--(Marketwire - April 12, 2012) -

Editors Note: There is a map associated with this press release.

Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA) announces that it has entered into a financing agreement ("The Agreement") with Trinity Assets Management International Ltd. ("Trinity") of Mauritius. Trinity agrees to subscribe in a private placement of $3 million in Afri-Can under the following terms and conditions:

  • Trinity has agreed to subscribed to a maximum amount of $3 million by way of a private placement of units;

  • The private placement is conditional upon a consolidation of Afri-Can's issued and outstanding common shares at a ratio of 4 pre-consolidation common shares for 1 post-consolidation common share. The share consolidation is conditional upon approval by Afri-Can's shareholders, expected within 60 days of this press release;

  • The private placement will comprise a maximum of 18.75 million units of Afri-Can at a subscription price of $0.16 per Unit. Each Unit will consist of one (1) common share and one (1) common share purchase warrant of Afri-Can. Each full warrant will entitle the holder thereof, during a period of 36 months from the date of closing of the private placement, to purchase one (1) Afri-Can common share at an exercise price of $0.20 per common share. Each security issued pursuant to the placement will have a mandatory four (4) month hold period;

  • Trinity will provide Afri-Can with an advance of $500,000 within 14 days of signing the Agreement. The advance will be convertible in 3.125 million units upon closing of the private placement. These units are included in the 18.75 million units described above. In the event that the share consolidation and private placement is not completed within 3 months from the signing of the Agreement, Afri-Can shall reimburse Trinity or negotiate a new agreement;

  • Upon closing of the private placement, Afri-Can will seek a listing for its common shares on South Africa's Alternative Exchange, AltX;

  • Trinity will be entitled to appoint one Director to the Board of Afri-Can.

The Agreement and private placement is subject to the approval of the TSX Venture Exchange.

Proceeds from the private placement will be used for geophysical surveying and sampling in anticipation of trial mining on specific areas of marine diamond Exclusive Prospecting Licence ("EPL") 3403 in Namibia and for general operating expenses.

The geophysical survey will start before the end of April, 2012 and we will advise shareholders of the exact departure date in due course.

Mr. Pierre Léveillé, President and CEO of Afri-Can, stated that, "The Agreement announced today establishes several key pillars for the future growth of Afri-Can. It enables us to proceed with development of EPL 3403 and complete the acquisition of 100% ownership of EPL 3403. It brings strongly motivated investors to assist with development of marine diamonds. The proposed share consolidation will establish Afri-Can on a stronger trading, financial and development basis."

EPL 3403 covers approximately 800 square kilometres and is adjacent to and north of the Atlantic One Mining Lease ("ML") 47 (owned by Namdeb Diamond Corporation (Pty) Limited, a 50:50 partnership between the Government of the Republic of Namibia and De Beers Centenary AG), which is the largest marine diamond deposit in the world (see attached map). ML 47 currently produces in excess of 1,100,000 carats per year.

About Afri-Can Marine Minerals Corporation

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

This press release contains certain "forward-looking statements," as identified in the Afri-Can's periodic filings 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.

To view the map associated with this press release, please visit the following link:

Shares outstanding: 238,524,984

Neither the 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.

Contact Information

  • Pierre Leveille
    President & CEO
    (514) 846-2133 / TOLL FREE North America: 1 (866) 206-7475
    (514) 372-0066 (FAX)

    Bernard J. Tourillon
    Executive V.P. and CFO
    (514) 846-2133 / TOLL FREE North America: 1 (866) 206-7475
    (514) 372-0066 (FAX) /