Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation

August 07, 2012 10:33 ET

Afri-Can Closes Second Tranche of Financing for $1.4 Million

MONTREAL, QUEBEC--(Marketwire - Aug. 7, 2012) - Afri-Can Marine Minerals Corporation ("Afri-Can" or the "Corporation") (TSX VENTURE:AFA) announces that it has closed a second tranche of $1,000,000 of the brokered private placement announced on April 12th and 20th, 2012, through Trinity Assets Management International Ltd. ("Trinity"). The closing of a further $1,000,000 related to the brokered placement is expected shortly. The Corporation also raised an additional $435,480 by way of a non-brokered private placement. To date, the Corporation has raised aggregate gross proceeds of $2,435,480 from private placements.

The second tranche of the Brokered Placement comprises 6,250,000 units of Afri-Can, at a subscription price of $0.16 each (the "Units"). The Non-Brokered Placement comprises 2,721,750 Units. Each Unit consists of one (1) common share of Afri-Can's capital (a "Common Share") and one (1) common share purchase warrant of the Corporation (a "Warrant"). Each Warrant entitles the holder thereof, during a period of 36 months from the date of closing of the placements, to purchase one Common Share at an exercise price of $0.20 per Common Share.

The Corporation will pay Trinity a finder's fee of $50,000 in connection with the Brokered Placement and has paid Jennings Capital Inc. a finder's fee of $34,838 and issued 217,740 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 placements has a mandatory four (4) month hold period from the date of closing of the placements. The closing of these placements remains subject to the approval of the Exchange.

The subscription of $1 million comprising the second tranche of the Brokered Placement has been provided by the same investor who provided the first tranche of $1 million (see press release dated July 6th, 2012). As a result, the total holding of this investor now exceeds 10% of Afri-Can's issued and outstanding Common Shares. Such investor is now deemed to be an insider of the Corporation and the second $1 million subscription has been closed "In Trust" subject to Exchange acceptance.

Regarding EPL 3403, geophysical survey analysis and interpretation are well advanced and an initial report is being prepared. The data's high quality and resolution enabled modeling of the geology, morphology and stratigraphy of the south end of EPL 3403 in greater detail than previously planned. This is expected to lead to improved preparation and planning for the second sampling program and eventual trial mining. The second sampling program scheduled will be finalized after closing of the brokered placement.

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.

Shares outstanding: 74,853,014

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