Afri-can to acquire 20% of EPL 3403
Afri-Can Marine Minerals Corporation (Afri-Can) has announced that it is exercising its option to acquire 20% of the shares of Thyme Investments. Thyme is the 100% owner of the Exploration and Prospecting License (EPL) 3403 marine diamond concession in the country.
As a result, the Thyme share purchase agreement announced on 12 October, 2010, between Afri-Can and International Dredging and Holding Ltd (IMDH) and BV Investments Four Hundred and Nine. (BVI), has been amended.
In consideration for 20% of Thyme’s shares, Afri-Can will issue 9,750,000 common shares to IMDH and 3,250,000 common shares to BVI, and make a cash payment of US$100,000 to IMDH.
In consideration for the remaining 80% of Thyme’s shares, Afri-Can will start a geophysical survey within three months of signing the amendment, make a cash payment of US$50,000 to IMDH at that time, complete an initial resource delineation sampling program before 31 December, 2012, and issue a total of 52 million common shares to IMDH and BVI.
The geophysical survey will cover a minimum of 1000 line-kilometres on an area of 90 square kilometres. The sampling program will extract a minimum of 300 samples and/or last for a maximum of 30 days.
The total number of shares that Afri-Can will issue for 100% of EPL 3403 remains unchanged from the original agreement at 65 million common shares.
The amendment to the Thyme share purchase agreement and share issuances are subject to regulatory approval.
The technical teams of Afri-Can and IMDH are currently planning the geophysical survey, which will start once the transaction has been approved by authorities. Details of the programme will be disclosed to investors in due course.
Pierre Léveillé, president and CEO of Afri-Can, stated:“We are happy with this amendment which provides better terms for the parties involved. Our previous sampling programme demonstrates the high potential of EPL 3403 and we will now focus on its development in order to unlock value for our shareholders.”
EPL 3403 covers approximately 800 square kilometres and is adjacent to and north of the Atlantic One Mining Lease (ML) 47 owned by Namdeb, a 50:50 partnership between government and De Beers. ML 47 is currently producing in excess of 1.1 million carats per year.