Afri-Can Marine Minerals Corporation

Afri-Can Marine Minerals Corporation
Deep-South Mining (PTY) Ltd.

Deep-South Mining (PTY) Ltd.

February 28, 2012 09:29 ET

Deep-South Signs Option Agreement to Earn 60% of Zebrafontein Concession in Namibia

WINDHOEK, NAMIBIA--(Marketwire - Feb. 28, 2012) - Deep-South Mining (PTY) Ltd ("Deep-South") and Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA) are pleased to announce that Deep-South has signed an option agreement with Teck Namibia Limited ("Teck"), a wholly owned subsidiary of Teck Resources Limited, to earn an undivided interest of 60% in the Zebrafontein Exploration and Prospecting Licence ("EPL") in southern Namibia.

The terms of the agreement stipulate that Deep-South shall incur cumulative exploration expenditures of US$1,000,000 on the EPL during the next 3 years. Furthermore, upon listing of its shares on the TSX Venture Exchange or any other Exchange as agreed between Deep-South and Teck, Deep-South shall issue to Teck 500,000 common shares and 500,000 share purchase warrants exercisable at a price equal to 125% of the listing price and maturing 24 months after the listing date.

The Zebrafontein EPL (EPL 3949) is located in the Karas region of southern Namibia. The EPL is situated at 8 kilometres northeast of the Rosh Pinah lead-zinc mine producing 105,000 tonnes of zinc concentrate annually and 10 kilometres northeast of the Skorpion lead-zinc mine producing 150,000 tonnes of SHG (special high grade) zinc annually. The EPL is also situated 13 kilometres northwest of the historic Lorelei copper prospect and 120 kilometres to the northwest of the Haib porphyry copper deposit.

Previous exploration work conducted by Teck includes geophysical surveys, geological mapping, stream sediment sampling, and detailed soil geochemistry. Stream sediment sampling completed by Teck has shown anomalous levels of copper and zinc in a number of areas within the southern portion of the EPL. The exploration results and analysis indicate that the Rosh Pinah Formation could extend onto the western portion of the Zebrafontein EPL beneath Quaternary cover. Furthermore, in the southwest portion of the EPL, magnetic mapping combined with anomalous copper stream sediment samples suggest potential for porphyry copper style mineralization similar to the Haib deposit.

An NI 43-101 qualifying report is currently under revision and will be disclosed publicly upon completion.

The agreement is subject to regulatory approval.

As previously announced on August 17, 2011, Afri-Can and Deep-South are reorganizing their relationship by establishing and listing a new company equally owned by Deep-South and Afri-Can. The 30% interest in the Haib copper project (Teck owns 70%) and the Zebrafontein option will be transferred to the new company. Upon listing of the new company, Afri-Can will transfer its common shares of the new company to Afri-Can's common shareholders through a share dividend payment. Details of the new corporate structure will be disclosed when application is made to list the shares.

Mr. John H. Akwenye, Chairman of Deep-South, stated that, "We are very happy with this agreement as we add some interesting exploration potential to our assets and add value for our upcoming listing. This agreement was needed to proceed with our listing and for Afri-Can to proceed with the share dividend to its shareholders."

Mr. Vivian Stuart-Williams 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 Deep-South

Deep-South is a Namibian private company involved in the acquisition and exploration of major precious and polymetallic mineral properties in Namibia.

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.

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

  • Afri-Can Marine Minerals Corp
    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)

    Deep-South Mining (PTY) Ltd.
    John H. Akwenye, Chairman
    +264-(0)-61-306114 (FAX)