Africa West Minerals Corp.
TSX VENTURE : AFW

Africa West Minerals Corp.

April 29, 2008 06:30 ET

Africa West Announces Property Acquisition, Financing, Appointments, and Options

KAMLOOPS, BRITISH COLUMBIA--(Marketwire - April 29, 2008) - Further to its news release dated February 22, 2008, Africa West Minerals Corp. ("Africa West" or the "Company") (TSX VENTURE:AFW) announces that it anticipates completing the share purchase (the "Share Purchase") of all of the outstanding shares of Gold Rim Exploration Inc. in consideration for which it will issue to the shareholders of Gold Rim an aggregate 4,200,000 common shares of Africa West.

The Company also announces a non-brokered private placement, subject to regulatory approval, of up to 6,000,000 units of the Company at a price per Unit of $0.15. Each Unit consists of one common share of the Company and one-half of one non-transferable share purchase warrant. Each whole warrant entitling the holder thereof to acquire one additional Common Share of the Company at a price of $0.25 per share for a period of 24 months from issuance, subject to accelerated expiry in certain circumstances. All securities issued will be subject to a four month hold period from the date of issuance. The proceeds from the private placement will be used, in part, to make payments for, and conduct exploration on, the properties acquired pursuant to the Share Purchase and for general corporate purposes.

As a result of the Share Purchase, Gold Rim will be a wholly-owned subsidiary of Africa West and Africa West has acquired title to the following Mining Licenses located in Tanzania and Kenya, East Africa.

Tanzania, East Africa

- Gold Rim Exploration has been able to bring together a group of local land owners and their Primary Mining Licenses (PMLs) in the heart of the Victoria Goldfields District.

- The PMLs are located about 6 km from Barrick's Bulyanhulu Mine, which hosts reserves of around 11.2 million ounces of gold at 12.6 grams per tonne.

- These 10 hectare claims had been sought after by many companies active in this particular area.

- In this case, Gold Rim has put together a group of 36 PMLs to form 3 blocks of contiguous claims now named the Nyakagwe Project.

- The geology of the Nyakagwe project is the same as that of the Bulyanhulu mine.

- The gold mineralization is found within a series of east to northeast striking quartz reefs that reflect a dilatent regime within the Bulyanhulu shear zone.

- Recently sampled grades from the Nyakagwe reefs range from 2.0 to 10.8 grams per tonne gold.

Kenya, East Africa

- Two areas in Kenya have had gold production in the last 100 years, the Kakamega area in the Western Province and the Migori area in the Nyanzan Province.

- The Kakamega district has been the most important producer in Kenya. Alluvial gold was first found in 1931 and reef gold was exploited from the area shortly thereafter. More than half the gold produced in the area came from the Rosterman Mine, which was worked to a depth of 2000 feet.

- The Rosterman Gold Mines Ltd. first started production in 1935 with a surface cut producing 2,783 ounces of gold from 2,274 tons (1.2 oz/ton or 42 g/t). Subsequent production until 1952 was 259,142 ounces from 655,000 tons (0.40 oz/ton or 13.6 g/t).

Kakamega Properties: 66 km2

- Gold Rim Exploration has applied for a 16 km2 EPL to cover the former Rosterman Mine and surrounding areas. The company has 2 other licenses in the immediate area for an additional 50 km2.

Ugunja Property: 1166 km2

- Gold Rim controls the Ugunja Joint Venture which includes an 1166 km2 EPL situated at the west end of the Kakamega greenstone belt, the same belt that hosts the Rosterman Mine.

Ngira Migori Property: 320 km2

- In the Migori Area the company has the 320 km2 Ngira Migori Joint Venture property. This area has had some previous gold and copper production from the nearby McAlder Mine.

- The Ngira property has seen small scale gold reef exploitation in the past.

Sotik Property: 485 km2

- Gold Rim also has the Sotik property which is located in the same southern province and is comprised of 485 km2 of gold prospective ground.

Africa West is also pleased to announce the following appointments as directors and officers:

Mr. Jeffrey Scott Ackert, Director and Vice-President, Exploration & Business Development

Mr. Ackert, a geologist, has been involved in gold exploration in Africa for over 10 years. Mr. Ackert has worked in Burkina Faso, Mali, Niger and Ghana in West Africa, and Tanzania and Kenya in East Africa. Mr. Ackert has worked for several majors in the past including six years as a mine geologist at Barrick's Golden Patricia mine in Northern Ontario. Most recently Mr. Ackert held the positions of vice-president of exploration and vice-president technical services for Orezone Resources Inc.

Mr. Basha Hifato, Manager of East Africa operations

Mr. Basha Hifato, is a director of Gold Rim Exploration as well as the President and CEO of Hifato Enterprises Inc., a company devoted to the expansion of knowledge, trade and investment between Canada and Sub-Saharan Africa. A graduate of Ottawa's Algonquin College Business Administration program, Mr. Hifato has been a liaison between the Kenyan and Tanzanian High Commissions and prospective investors. Just recently, Basha was instrumental in bringing the Karen Heart Institute from Kenya together with the University of Ottawa Heart Institute to facilitate the sharing of information and equipment. Basha Hifato has built a strong network of contacts within the East African community including current and former government ministers. In Canada Mr. Hifato has been a charter member of the Nepean South Rotary Club and past Vice President of the Secretariat for African Trade Development and Information Services (SATDIS).

Mr. Guy Pas, Non Executive Director on the Board of Directors

Guido ('Guy') Pas is a Belgian financier based in Geneva with 35 years of experience in finance, mining and exploration. He was a Vice President of Chase Manhattan Bank (Belgium; France and Switzerland) in structured and commodity finance, from 1973 to 1983 when he joined a team at 'Africa-focussed oil trading companies' and was CFO from 1984 to 1987. He has been involved in numerous start-up and early-stage resource ventures, including: in 1987 as co-founder of The Addax & Oryx Group Ltd., an integrated African oil group, (its upstream division now listed on TSX (APC)) and in 2004, Afren Plc, a West African oil & gas company listed on AIM London (AFR). In 1989, as director of Addax & Oryx he co-founded and was the chairman of Samax Resources Ltd, which enjoyed two major gold mine discoveries in Tanzania; Golden Pride (reserves of 570,000 ounces at a grade of 2.2 g/t Au with 2006 production of 145,043 ounces) now owned and operated by Resolute and a part of the Geita Gold Mine (reserves of 10.3 million ounces at 3.5 g/t Au with 2006 production of 308,000 ounces) now owned and operated by AngloGold Ashanti. Samax sold their assets in Tanzania to Ashanti in 1998. In 1995, Mr. Pas founded and was chairman (currently non executive Director) of Mano River Resources Inc., dual listed on TSXV and AIM, a pioneer in Liberia and Sierra Leone, and equally active in Guinea, In 2004 he co-founded Synergy Resources Fund renamed GAIA Resources Fund, which focuses on early stage private and public resource companies.

In addition, Mr. Christopher J. Wild, current director, has been appointed Vice-President, Operations, and Mr. Hani Zabaneh has resigned as a director of the Company. The board wishes to thank Mr. Zabaneh for his contribution to the Company and wishes him every success in his future endeavours.

Africa West Minerals Corp. has adopted a new stock option plan, which reserves for issuance 5,367,813 common shares for issuance pursuant to incentive stock options, subject to shareholder and regulatory approval. It has also granted 2,990,000 incentive stock options to directors, officers, employees and consultants of the company, exercisable at a price of $0.15 per share for a period of five years from the date of grant. These options cannot be exercised until the requisite shareholder and regulatory approval has been obtained.

The technical content of this news release has been prepared under the supervision of Jeffery Ackert who is a Qualified Person under National Instrument 43-101.

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africa West believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Africa West's management on the date the statements are made. Africa West undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Africa West Minerals Corp.
    James T. Gillis
    President
    (250) 314-0186
    (250) 828-1005 (FAX)