Afri-Can targets Haib copper

AFRI-CAN Marine Minerals, a Canadian company involved in the acquisition, exploration and development of major mineral properties in Namibia, has announced it wants to acquire a 70 per cent stake in a major copper deposit known as “Haib Copper” from Deep South Mining.

Pierre Leveille, Afri-Can president and CEO said: “Haib is a major copper porphyry deposit in an excellent location and its value has been significantly enhanced by the current conditions and future outlook in the copper market.” The company’s offer includes developing the concession to full production capacity.The Exclusive Prospecting License (EPL #3140) for Haib Copper, is located in the south of Namibia near the South African border. It covers 2 000 sq. km and is located, 8km from the Orange River.However, Afri-Can said “the letter of intent is conditional and subject to approval by Canadian and Namibian regulatory authorities”. The Namibian Directorate of Mines has not seen the proposal yet. Afri-Can is to pay Canadian $100 000 (N$492 767) on approval of the two governments and C$500 000 (N$2,463,836) after a due diligence report.Afri-Can says it will, within two years, spend at least C$2 million (N$9,8m) in exploration activities in order to prepare an updated bankable feasibility study.Then it will issue C$5,5 million (N$27,1m) worth of its common shares to Deep South, at a market discount of 10 per cent and issue 2 million warrants exercisable at a market premium of 30 per cent, exercisable for a period of 3 years.Upon completion of the production financing for the project, Afri-Can will make a final cash payment of C$5 million(N$24,6m).Further to the acquisition of 70 per cent by Afri-Can, Deep South shall have an option to sell its remaining 30 per cent for C$5 million and a 2 per cent net smelter royalty, the Canadians said.Since its discovery in 1948, several companies including Falconbrige Limited, Rio Tinto Plc and more recently the Namibian Copper Joint Venture (NCJV) have conducted extensive exploration programs on the property.”Both the Rio Tinto and BDB’s estimate of indicated resources .. indicate that this section of the deposit could host more than 2 billion pounds of copper in situ,” Afri-Can said.The company’s offer includes developing the concession to full production capacity.The Exclusive Prospecting License (EPL #3140) for Haib Copper, is located in the south of Namibia near the South African border. It covers 2 000 sq. km and is located, 8km from the Orange River. However, Afri-Can said “the letter of intent is conditional and subject to approval by Canadian and Namibian regulatory authorities”. The Namibian Directorate of Mines has not seen the proposal yet. Afri-Can is to pay Canadian $100 000 (N$492 767) on approval of the two governments and C$500 000 (N$2,463,836) after a due diligence report. Afri-Can says it will, within two years, spend at least C$2 million (N$9,8m) in exploration activities in order to prepare an updated bankable feasibility study.Then it will issue C$5,5 million (N$27,1m) worth of its common shares to Deep South, at a market discount of 10 per cent and issue 2 million warrants exercisable at a market premium of 30 per cent, exercisable for a period of 3 years.Upon completion of the production financing for the project, Afri-Can will make a final cash payment of C$5 million(N$24,6m).Further to the acquisition of 70 per cent by Afri-Can, Deep South shall have an option to sell its remaining 30 per cent for C$5 million and a 2 per cent net smelter royalty, the Canadians said. Since its discovery in 1948, several companies including Falconbrige Limited, Rio Tinto Plc and more recently the Namibian Copper Joint Venture (NCJV) have conducted extensive exploration programs on the property. “Both the Rio Tinto and BDB’s estimate of indicated resources .. indicate that this section of the deposit could host more than 2 billion pounds of copper in situ,” Afri-Can said.