Afri-Can Marine Minerals Corporation
TSX VENTURE : AFA

Afri-Can Marine Minerals Corporation

August 17, 2011 10:03 ET

Early Exercise of Option on Haib Copper Project, Namibia. Deep-South and Afri-Can to List the Remaining 30% Through a New Entity

MONTRÉAL, QUÉBEC --(Marketwire - Aug. 17, 2011) - Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA) and Deep-South Mining (PTY) Ltd ("Deep-South"), announce that Teck Cominco Namibia Limited ("Teck"), a wholly owned subsidiary of Teck Resources Limited, has informed Deep-South that it has incurred the required exploration expenditures and payments and has exercised its option to earn a 70% undivided interest in the Haib copper project in Namibia.

In order to acquire its 70% interest Teck had until December 31st, 2012 to incur exploration expenditures totaling US$2 million and to incur optional non-cumulative cash payments to Deep South totaling US$700,000 over 4 years (please see July 2nd, 2008 press release at www.afri-can.com). The exploration expenditures were incurred 16 months earlier than required pursuant to the agreement.

The remaining 30% interest in the Haib copper project will be divided equally between Deep-South and Afri-Can, and Afri-Can will exchange its interest in the property for 50% of the common shares of Deep-South. Thereafter, Deep-South will seek a listing for its common shares on a Canadian Exchanges and on the Namibian Stock Exchange. Upon the listing of Deep-South, Afri-Can will transfer its common shares of Deep-South to Afri-Can's common shareholders through a share dividend payment. The exact terms of the listing and dividend payment will be finalized in the coming weeks and will be subject to regulatory approval.

The original agreement with Teck stipulates that, upon Teck earning its 70% interest, Deep-South shall fund its 30% share of costs of the development of the project. In the event that Deep South does not fund its share of an approved program, its interest in the joint-venture shall be diluted and, should it be diluted to under 20%, the remaining Deep-South interest will be converted into a 12% Net Profit Interest (NPI). In the event that Teck should decide to bring the Property into commercial production, Teck will pay a production bonus to Deep South totaling US$1 million within 60 days of the completion date of the mine. The agreement also states that the NPI and any production bonus will be divided equally between Deep South and Afri-Can. Deep-South and Afri-Can have agreed to convert Afri-Can's interest in any NPI and potential production bonus into shares of Deep-South.

Deep-South is currently in discussions with investment bankers in order identifying the best structure for the proposed listing, initiating the listing procedures, and starting the initial funding process.

Teck is currently planning further work programs that will be disclosed to Afri-Can and Deep South in due course.

Mr. John H. Akwenye, Chairman of Deep-South, stated that "the decision of Teck to exercise the option 16 months earlier than the agreement shows a serious commitment to the project and its potential. We are proud to be one of the very first if not the first Namibian exploration company to seek a listing on international markets."

Mr. Pierre Léveillé, President & CEO of Afri-Can, stated that "We are very happy with this early exercise as it will enable Afri-Can to unlock the value of this project for its shareholders while we continue to focus on our marine diamond projects."

The Haib Copper exploration license is located in the Karas region of southern Namibia, 8 km from the Orange River and the South African border. Haib is a copper-molybdenum deposit hosted within a quartz-feldspar porphyry. Afri-Can has filed a National Instrument 43-101 compliant technical report in October 2004, entitled "The Haib Copper Porphyry Project, Namibia" which is available on Afri-Can's website at www.afri-can.com.

Mr. Vivian Suart-Williams is responsible for the technical part concerning the Haib Copper project of this press release and is the designated Qualified Person under the terms of National Instrument 43-101.

On another matter, Mr. Marcel Drapeau has resigned from the Board of Directors of Afri-Can The Board of Directors acknowledges Mr. Drapeau for his strong commitment and professionalism for the last 15 years, and thanks him for his contribution to Afri-Can.

Mr. Drapeau will continue to act as legal counsel to Afri-Can.

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. 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.

Shares outstanding: 238,524,984

Contact Information

  • Afri-Can Marine Minerals Corporation
    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)
    info@afri-can.com
    www.afri-can.com