African Metals Corporation Completes Acquisition of a Further 33% Interest in the Luisha Project
September 20 2010 - 7:51PM
Marketwired
African Metals Corporation (the "Company") (TSX VENTURE:
AFR)(FRANKFURT: OWW) is pleased to announce that the Company has
completed the acquisition (the "Acquisition") of a further 33%
interest in Luisha Mining Enterprise s.p.r.l. ("LME") and the
Luisha South Project. LME is a private company incorporated under
the laws of the Democratic Republic of Congo (the "DRC"). In March
of 2010, the Company completed the acquisition of its wholly-owned
subsidiary Chevalier Resources Inc. ("Chevalier") which held a 57%
interest in LME and the Luisha South Project.
The Acquisition was completed pursuant to a share purchase and
option agreement (the "Agreement") among the Company, Chevalier,
TSM Enterprise s.p.r.l. ("TSM") and LME. Under the Agreement, the
Company will initially, through Chevalier, purchase an additional
18% interest in LME in consideration of the issuance of 6,421,233
shares having an aggregate value of $1,500,000 to TSM at a price of
$0.2336 per share. Upon completion of this initial share purchase,
the Company, through Chevalier, will have a 75% interest in LME and
the Luisha South Project.
The Agreement further provides that the Company will have the
exclusive option (the "Option") to acquire an additional 15%
interest in LME and the Luisha South Project. The Option is
exercisable, at the Company's election, on the date that the
Company notifies TSM that a Qualified Person has estimated an
Indicated Mineral Resource of 50,000 tonnes of contained copper
metal and 5,000 tonnes of contained cobalt metal. The Company may
exercise the Option within 30 days from the date of such notice by
issuing shares having an aggregate value of $1,000,000 at the time
the Option is exercised (at a price not less than $0.2336 per
share) and by making a cash payment of $200,000 to TSM. If the
Option is exercised, the Company, through Chevalier, will have a
90% interest in LME and the Luisha South Project.
In conjunction with the exercise of the Option, the Company will
make milestone payments to TSM as follows: (i) upon an Indicated
Mineral Resource of 100,000 tonnes of contained copper metal and
10,000 tonnes of contained cobalt metal being estimated on the
Luisha South Project the Company will issue shares having an
aggregate value of $2,000,000 (at a price not less than $0.2336 per
share) and make a cash payment of $500,000; (ii) upon an Indicated
Mineral Resource of 150,000 tonnes of contained copper metal and
15,000 tonnes of contained cobalt metal being estimated on the
Luisha South Project the Company will issue shares having an
aggregate value of $1,000,000 (at a price not less than $0.2336 per
share) and make a cash payment of $250,000; and (iii) upon an
Indicated Mineral Resource of 200,000 tonnes of contained copper
metal and 20,000 tonnes of contained cobalt metal being estimated
on the Luisha South Project, the Company will issue shares having
an aggregate value of $1,000,000 (at a price not less than $0.2336
per share) and make a cash payment of $250,000.
The TSX Venture Exchange has granted final acceptance of the
Acquisition, Option and milestone payments.
The Company is also pleased to announce that Mr. Simeon
Tshisangama has been appointed as a director of the Company,
effective today, pursuant to the Agreement. In addition, the
Company has retained the services of Mr. Tshisangama as a
consultant in the DRC and has entered into a consulting agreement
among Mr. Tshisangama, the Company and LME. Mr. Tshisangama will
receive a fee of $10,000 per month under the consulting agreement,
$6,000 of which is payable by the Company.
Nigel Ferguson, President and CEO of the Company, commented, "We
are very pleased to have secured the extra equity percentage in
this exciting project. Recent results from the project have
indicated excellent copper and cobalt grades exist within the
project's historical open pit at Luisha South. The extra equity
will afford shareholders significant additional exposure to the
upside potential of the project. In addition we have secured the
services of our joint venture partner, Mr. Simeon Tshisangama,
whose wealth of operational experience and contact base in the
Democratic Republic of Congo will be invaluable to the success of
the Company in delineating significant resources and bringing those
resources to fruition."
The Company would also like to announce that Mr. Peter
Rook-Green has been appointed as the treasurer of the Company
effective today.
The Luisha South Project is located 75 kilometres northwest of
Lubumbashi, the capital of Katanga Province and consists of a
single licence of approximately 16.2km2. It includes a small
historical open pit mine and associated waste rock pile and is
underlain by Roan Group sediments which host major Cu-Co deposits
in the Central African Copper Belt of Zambia and the DRC. The
Luisha South ore body was explored by geophysical methods, drilling
and some shafts and tunnels between 1923 and 1928 and an oxide
deposit with an estimated pre-production tonnage of approximately
350,000 tonnes at 8.6% Cu was delineated (refer NI43-101 compliant
Technical Report on the Luisha Copper-Cobalt Project by Strathcona
Mineral Services Limited). The Luisha South Project also covers
some three kilometres of the Roan Group strike length, which is
considered favourable for hosting Cu-Co mineralization.
ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN METALS
CORPORATION
Nigel Ferguson, President & CEO
This News Release contains forward-looking statements.
Forward-looking statements are statements which relate to future
events. These statements are only predictions and involve known and
unknown risks, uncertainties and other factors that may cause our
or our industry's actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. While these
forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect our current judgment
regarding the direction of our industry, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested
herein. Except as required by applicable law, the Company does not
intend to update any of the forward-looking statements to conform
these statements to actual results.
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 news release.
Contacts: African Metals Corporation Sheryl Jones CFO
604-507-2181 604-507-2187 (FAX) info@africanmetals.com
www.africanmetals.com
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