Afri-Can and Deep South Receive Approval From the Ministry of Mines and Energy of Namibia for the Option With Teck Cominco on the Haib Copper Project, Namibia
MONTREAL, QUEBEC–(Marketwire – Aug. 21, 2008) – Afri-Can Marine Minerals Corporation (“Afri-Can”) (TSX VENTURE:AFA) (FRANKFURT:AJF) and Deep South Mining (PTY) Ltd. (“Deep South”) announce that the option and joint venture agreement (“Agreement”) with Teck Cominco Namibia Ltd. (“Teck Cominco”) (previously announced on July 2, 2008), has been approved by the Ministry of Mines and Energy of Namibia. The Agreement is effective on July 28, 2008. The Haib Copper Project in southern Namibia is comprised of one prospecting license (“Property”) held by Deep South. Afri-Can has terminated its pre-existing option with Deep South in consideration of certain payments under this Agreement.
Under the terms of the Agreement, Teck Cominco shall have the option to acquire a 70% indirect beneficial interest in the Property by incurring exploration expenditures on the Property totalling US$2 million and incurring optional non-cumulative cash payments to Deep South totalling US$700,000 over 4 years. Once Teck Cominco has acquired its 70% interest, Deep South will have the option to convert its 30% interest into a 2% Net Smelter Royalty (NSR), payable to Deep South and Afri-Can as to 50% each, or fund its 30% share of ongoing exploration and development costs. In the event that Deep South does not fund its share of ongoing costs and its share in the joint venture is diluted to less than 20%, the remaining interest will be transferred into a 12% Net Profit Interest (NPI) payable to Deep South and Afri-Can as to 50% each. In the event that Teck Cominco decides to bring the Property into commercial production, Teck Cominco will pay a US$1 million production bonus, payable to Deep South and Afri-Can as to 50% each, within 60 days of the completion date of the mine.
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 typical porphyry copper-molybdenum deposit hosted within quartz-feldspar porphyry. A National Instrument 43- 101, filed by Afri-Can in 2004, quotes historic indicated resources of 1.3 billion tonnes grading 0.23% at a 0.1% copper cut-off (the technical report entitled “The Haib copper porphyry project – October 2004″ is available on Afri-Can’s website at www.afri- can.com). It is important to note that the Qualified Person who completed the above-mentioned 43-101 technical report has not done sufficient work to classify the historical estimate as current mineral resources. Therefore, Afri-Can is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. Teck Cominco plans to re- evaluate the known mineralization and test unexplored areas within the concession.
Pursuant to this Agreement, in consideration for geotechnical services rendered since 2004 including utilization of the historical database, Mr. Vivian Stuart-Williams shall receive 300,000 shares of Afri-Can upon receipt of the approval by the authorities.
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 unexplored prospective territories.
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