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8/17/2011 3:14:20 PM
Afri-Can Marine Minerals Corporation (AFA.V) and Deep-South Mining ( PTY ) Ltd (a Namibian private company), announced that Teck Cominco Namibia Limited, a wholly owned subsidiary of Teck Resources Limited (TCK-B.TO), 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.
AFA is now up 0.5 cents at 6.5 cents, having earlier touched 8 cents.
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. 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.