Afri-Can Marine Minerals has signed a MOU for development and mining of diamond fields mining lease 111 and EPL 3403 off the Namibian coast.

The MOU with International Mining and Dredging Holding (IMDH) allows for the development and mining of the mining leases under option with Diamond Fields International and of the exclusive prospecting license 3403, both situated off the coast of Namibia.

“We are very pleased with this agreement as it gets us to a level that will allow mining and provide regular development and value for our shareholders. The DFI portfolio of Mining Leases complements EPL 3403 and offers very good development potential. We feel that we are sitting in a strong project in a very solid industry,” says Pierre Léveillé, President and CEO of Afri-Can.

IMDH will design and operate a large sampling program of up to 800 samples mainly on ML 111 and, to a lesser extent, on EPL 3403. The sampling program will serve to establish mining blocks and grades in preparation for mining and to upgrade some of the NI 43-101 inferred resources to the indicated category, as well as further the development of EPL 3403.

Afri-Can’s immediate goal is to focus on ML 111’s existing resources in order to resume production in the shortest time frame possible. There are also several other features, additional to those containing resources, within the four DFI leases that hold potential for diamond mineralisation but have been insufficiently sampled, and these features will be investigated. The second goal is to complete the sampling program on EPL 3403, which remains a high priority exploration target.

Afri-Can and IMDH will share equally in the net profits from production after payment of 10% of the net profits to DFI and 10% of the net profits to Woduna Mining Holding.

Afri-Can is currently preparing a pre-feasibility study and a preliminary economic assessment (PEA). IMDH will prepare the mining plan from the PEA and from the results of the sampling program. The company is currently revising various options in order to raise the funds needed.  The funding phase will include a payment of US$350,000 to IMDH by Afri-Can, which is due from the last sampling program on EPL 3403 carried out in December 2012.