Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation

October 12, 2010 10:25 ET

Afri-Can Marine Minerals Acquires Marine Diamond Concession Adjacent to Namdeb's Atlantic One Mining Lease in Namibia

MONTREAL, QUEBEC--(Marketwire - Oct. 12, 2010) - Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA) announces that it has entered into an agreement to acquire 100% of the Exploration and Prospecting License 3403 ("EPL 3403") from International Mining and Dredging Holding Ltd. ("IMDH") and BV Investments Four Hundred and Nine (Pty) Ltd. ("BVI") in exchange for 65 million common shares of Afri-Can. EPL 3403 is situated about 120 kilometres south of Luderitz in Namibia (see map:

About EPL 3403

EPL 3403 covers about 800 square kilometres and is adjacent to the 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. ML 47 is currently producing in excess of 1,100,000 carats per year. EPL 3403 is contiguous with ML 128(C), and is close to ML 43 and ML 44. Namdeb recently announced that it will spend US$ 175 million to increase the diamond resources in ML 43 by 68 million carats. Thus EPL 3403 is well positioned relative to surrounding properties.

IMDH holds a 75% interest in EPL 3403, and BVI has 25%. Over the past 3 years, IMDH has conducted a reconnaissance geophysical survey, a regional geophysical survey with 113 vibracore samples, reconnaissance sampling and a localised regional sampling program.

Expenditures on the historic work programs on EPL 3403 amount to about US$ 9 million.

Various geological features have been identified in EPL 3403. 199 samples of 5 m2 (square meters) have been extracted, with 14 samples returning 23 stones ranging between 0.07 and 2.69 carats. The four largest stones weighed 0.80, 1.19, 1.20 and 2.69 carats. Multiple stones were found in 5 samples, one of which contained 6 stones. In one area in the south, 8 positive samples had an average size of 0.80 carats per stone, which is comparable to results from Namdeb's ML 47.

About the agreement

EPL 3403 is wholly-owned by Thyme Investments (Pty) Ltd. ("Thyme"), which is owned by IMDH and BVI. Afri-Can will acquire 100% of Thyme by issuing from treasury 48.75 million Afri-Can common shares to IMDH and 16.25 million Afri-Can common shares to BVI, for a total issuance of 65 million shares. At that time, IMDH shall have right to appoint two Directors to the Board of Directors of Afri-Can.

Closing of the sale of EPL 3403 is conditional upon Afri-Can raising a minimum of US$5.5 million before December 31, 2010. 

Upon completion of the acquisition of EPL 3403, Afri-Can will commence a resource delineation program. This program will include regional and local sampling programs and detailed geophysical survey and vibracoring on certain specific features. Thereafter, Afri-Can will proceed with detailed sampling in order to delineate diamond resources and prepare for trial mining. Details of the programs will be disclosed to our shareholders in due course.

The vessel MV DP The Explorer will be made available by IMDH for the sampling program. IMDH will also make other vessels and its technical expertise available, as required. In our sampling program on Block J this year, The Explorer has proved to be very efficient and is the ultimate vessel for future sampling programs.

The agreement is subject to approval by the TSX Venture Exchange.

Mr. Pierre Léveillé, President and CEO of Afri-Can, stated that, "We are delighted with this transaction. EPL 3403 sits in the middle of the most productive marine diamond field in the world. It brings substantial development potential, and is another quality asset to add to Block J and adds serious value for our shareholders. Furthermore, this transaction solidifies our strategic alliance with IMDH, who have a proven track record in the marine sampling and mining industry."

About Block J

The National Instrument 43-101 report on Block J is nearing completion. The first sampling program of The Explorer, with its state-of-the-art technology, has generated an abundance of detailed data, rendering the compilation and analysis more complex than with earlier systems. In addition to the volume of data to be handled, geological observations have indicated variations in local geological models compared with previously published versions. As an example, the former 'Basal Miocene' unit that forms a small scarp in Features 8, 17 and 19, is now considered to be Eocene in age. This new information has allowed a revision and enhancement of local geological models, which is fundamental to the diamond resource evaluation process.

Mr. Richard W. Foster is responsible for the technical part of this press release and is the designated Qualified Person under the terms of National Instrument 43-101. 

About Afri-Can Marine Minerals Corp

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 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.

Shares outstanding: 192,917,484

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

  • 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)