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20.04.2010
African Metals Corporation Completes Acquisition of Chevalier Resources Inc. and Luisha Mining Project
African Metals Corporation Completes Acquisition of Chevalier Resources Inc. and Luisha Mining Project
VANCOUVER, BC – Nigel Ferguson, the President of African Metals Corporation (TSX Venture Exchange: AFR) would like to announce that the Company has completed the acquisition (the “Acquisition”) of all of the issued and outstanding securities of Chevalier Resources Inc. (“Chevalier”) which was first announced on November 6, 2009.
Chevalier, a private company incorporated in Canada, has a wholly-owned subsidiary, Luisha Mining Company Sprl., which holds a 57% interest in the Luisha Project which consists of 20 parcels of land with an area of 16.2 square kilometers located 75 kilometers northwest of Lubumbashi, the capital of Katanga Province, Democratic Republic of Congo.
The Acquisition was completed pursuant to a share exchange agreement entered into by the Company, Chevalier and shareholders of Chevalier dated January 29, 2010 (the “Agreement”). As consideration under the Agreement, the Company issued one common share in exchange for each Chevalier share outstanding for a total of 32,500,000 shares at a deemed price of $0.335 per share, and one common share purchase warrant in exchange for each Chevalier share purchase warrant outstanding for a total of 700,000 share purchase warrants. Each warrant is exercisable into one common share of the Company at a price of $0.50 per share at any time up to and including 17h00 (Montreal time) the date that is twenty-four (24) months from July 21, 2008. The total value of the Acquisition is $10,887,500 based on a deemed price of $0.335 per share issued.
In connection with the Acquisition, the Company paid a finder’s fee to M Partners Inc., an arm’s length entity, payable 50% in cash ($81,656.25) and 50% in shares (243,750 shares of the Company having a deemed price of $0.335 per share). In addition, Chevalier paid a finder’s fee to PowerOne Capital Markets Limited, an arm’s length entity, payable by the issuance of 385,634 shares of the Company having a deemed price of $0.335 per share.
Nigel Ferguson, President and CEO, stated that “I am very pleased to have the deal concluded with Chevalier. The project area shows great promise, being located between areas of historical and current mining to the north and a development project to the south. Field work has begun at the project and a program of drilling will follow on the back of receipt of these results. I look forward to being able to update the market in the near future”
About the Luisha Project
The Luisha South Historical Pit.
Located in the northwest corner of the permit, previous mining work during the 1940’s by Union Miniere of Katanga (230,000t @ 10.1%Cu and 2%Co), and more recently by artisanal miners, was limited to high grade ore shoots now exposed in a 250m long, 80m wide and 30m deep pit. Recent small scale mining by TSM Enterprises on the footwall of the pit has exposed a Cu and Co rich sequence hosted in carbonaceous breccias in a chalk rich matrix. Grades have been returned as high as 30%Cu and 20%Co from selectively mined zones.
Please find a picture about the Luisha Projekt under the following link: http://www.irw-press.com/dokumente/AFR_260310.pdf
Limited sampling from the base of the pit by independent consultants Strathcona Mineral Services in 2007 returned average grades of 3.2%Cu and 0.60%Co over 10 metres and 5.04%Cu and 0.16%Co across 6.5 metres. Subsequent outcrop channel sampling from the pit resulted in assays ranging from 0.7%Cu to 9.2%Cu and 0.2%Co to 2.8%Co.
Exploration Potential – The South East Strike Extension
The Luisha permit covers some four kilometres of the Roan Group Mine Sequence strike length and is considered highly favourable for Cu-Co mineralization. Historical mines are located at either end of this strike trend. With drill information available for the pit area only, information on the geology of the remaining permit is based historical mapping from 1925, which shows the Roan Group to extend from Luisha southeast to Juidera, Kipoi and Kileba.
On adjacent properties, recent work by Tiger Resources at Kipoi has confirmed continuous Roan Group units over a strike length of about 13 kilometres across the Kipoi permit area where Tiger report an inferred resource of some 13.4 million tonnes at 3.3% Cu, 0.15% Co, and 3.3g/t Ag for the Kipoi project. Results of a definitive feasibility study for the Kipoi project, managed by Lycopodium Engineering Pty Ltd, defined a measured and indicated mineral resources of 2.9 million tonnes with a grade of 8.1% Cu and 0.15% Co, using a 5% Cu cut-off grade.
In undertaking the Chevalier acquisition, African Metals management believes that there is potential for developing copper-cobalt resources similar to those found on the adjacent properties.
Luisha Project Low Grade Stockpile
A stockpile of approximately 350,000 tonnes adjacent to the pit has been sampled by independent consultants Strathcona Mineral Services in 2007 using an excavator. Grades from ten pits varied from 0.1% to 1.9% Cu and 0.1% and 0.9% Co. This material may prove to be economically viable through a heap leach process. Further sampling and test work is required.
Work Program
Previous grab and limited channel sampling completed by Strathcona Mineral Services Limited for Chevalier revealed significant mineralization still remains within the historical pit. Local small scale mining by TSM Enterprises sprl (“TSM”), Chevalier’s joint venture partner in the Luisha South Project, is fundamentally targeting remnant high grade copper and cobalt mineralization within the footwall of the historical pit left by previous miners. This work to date has essentially commenced a small cut back of the pit wall to access the high grade mineralization as evidenced by previous sampling work. Both copper and cobalt grades have been reported by TSM as high as 40% copper and 25% cobalt, however a more realistic average grade expected at the project would be 4% to 6% copper and 1% to 3% cobalt.
The current planned work program will be centered on developing a better understanding of the nature, control and style of mineralization including the geometry of the high grade shoots within the historical pit, especially the footwall zone, through a more detailed channel sampling, detailed mapping and structural interpretation program to allow targeting of future drilling programs.
Please find a picture about the work program under the following link: http://www.irw-press.com/dokumente/AFR_260310_2.pdf
The National Instrument 43-101 compliant Technical Report entitled “Luisha Copper-Cobalt Project Katanga Province Democratic Republic of Congo” dated January 25, 2010 which was prepared by Strathcona Mineral Services Limited for the Company is available on SEDAR (www.sedar.com).
Nigel Ferguson, AusIMM, President and CEO of the Company and a qualified person under National Instrument 43-101, has verified data disclosed in this release.
For more information please contact Sheryl Jones, CFO at 604-507-2181.
ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN METALS CORPORATION
“Nigel Ferguson”
Nigel Ferguson
President & CEO
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 NEW RELEASE.
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.
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VANCOUVER, BC – Nigel Ferguson, the President of African Metals Corporation (TSX Venture Exchange: AFR) would like to announce that the Company has completed the acquisition (the “Acquisition”) of all of the issued and outstanding securities of Chevalier Resources Inc. (“Chevalier”) which was first announced on November 6, 2009.
Chevalier, a private company incorporated in Canada, has a wholly-owned subsidiary, Luisha Mining Company Sprl., which holds a 57% interest in the Luisha Project which consists of 20 parcels of land with an area of 16.2 square kilometers located 75 kilometers northwest of Lubumbashi, the capital of Katanga Province, Democratic Republic of Congo.
The Acquisition was completed pursuant to a share exchange agreement entered into by the Company, Chevalier and shareholders of Chevalier dated January 29, 2010 (the “Agreement”). As consideration under the Agreement, the Company issued one common share in exchange for each Chevalier share outstanding for a total of 32,500,000 shares at a deemed price of $0.335 per share, and one common share purchase warrant in exchange for each Chevalier share purchase warrant outstanding for a total of 700,000 share purchase warrants. Each warrant is exercisable into one common share of the Company at a price of $0.50 per share at any time up to and including 17h00 (Montreal time) the date that is twenty-four (24) months from July 21, 2008. The total value of the Acquisition is $10,887,500 based on a deemed price of $0.335 per share issued.
In connection with the Acquisition, the Company paid a finder’s fee to M Partners Inc., an arm’s length entity, payable 50% in cash ($81,656.25) and 50% in shares (243,750 shares of the Company having a deemed price of $0.335 per share). In addition, Chevalier paid a finder’s fee to PowerOne Capital Markets Limited, an arm’s length entity, payable by the issuance of 385,634 shares of the Company having a deemed price of $0.335 per share.
Nigel Ferguson, President and CEO, stated that “I am very pleased to have the deal concluded with Chevalier. The project area shows great promise, being located between areas of historical and current mining to the north and a development project to the south. Field work has begun at the project and a program of drilling will follow on the back of receipt of these results. I look forward to being able to update the market in the near future”
About the Luisha Project
The Luisha South Historical Pit.
Located in the northwest corner of the permit, previous mining work during the 1940’s by Union Miniere of Katanga (230,000t @ 10.1%Cu and 2%Co), and more recently by artisanal miners, was limited to high grade ore shoots now exposed in a 250m long, 80m wide and 30m deep pit. Recent small scale mining by TSM Enterprises on the footwall of the pit has exposed a Cu and Co rich sequence hosted in carbonaceous breccias in a chalk rich matrix. Grades have been returned as high as 30%Cu and 20%Co from selectively mined zones.
Please find a picture about the Luisha Projekt under the following link: http://www.irw-press.com/dokumente/AFR_260310.pdf
Limited sampling from the base of the pit by independent consultants Strathcona Mineral Services in 2007 returned average grades of 3.2%Cu and 0.60%Co over 10 metres and 5.04%Cu and 0.16%Co across 6.5 metres. Subsequent outcrop channel sampling from the pit resulted in assays ranging from 0.7%Cu to 9.2%Cu and 0.2%Co to 2.8%Co.
Exploration Potential – The South East Strike Extension
The Luisha permit covers some four kilometres of the Roan Group Mine Sequence strike length and is considered highly favourable for Cu-Co mineralization. Historical mines are located at either end of this strike trend. With drill information available for the pit area only, information on the geology of the remaining permit is based historical mapping from 1925, which shows the Roan Group to extend from Luisha southeast to Juidera, Kipoi and Kileba.
On adjacent properties, recent work by Tiger Resources at Kipoi has confirmed continuous Roan Group units over a strike length of about 13 kilometres across the Kipoi permit area where Tiger report an inferred resource of some 13.4 million tonnes at 3.3% Cu, 0.15% Co, and 3.3g/t Ag for the Kipoi project. Results of a definitive feasibility study for the Kipoi project, managed by Lycopodium Engineering Pty Ltd, defined a measured and indicated mineral resources of 2.9 million tonnes with a grade of 8.1% Cu and 0.15% Co, using a 5% Cu cut-off grade.
In undertaking the Chevalier acquisition, African Metals management believes that there is potential for developing copper-cobalt resources similar to those found on the adjacent properties.
Luisha Project Low Grade Stockpile
A stockpile of approximately 350,000 tonnes adjacent to the pit has been sampled by independent consultants Strathcona Mineral Services in 2007 using an excavator. Grades from ten pits varied from 0.1% to 1.9% Cu and 0.1% and 0.9% Co. This material may prove to be economically viable through a heap leach process. Further sampling and test work is required.
Work Program
Previous grab and limited channel sampling completed by Strathcona Mineral Services Limited for Chevalier revealed significant mineralization still remains within the historical pit. Local small scale mining by TSM Enterprises sprl (“TSM”), Chevalier’s joint venture partner in the Luisha South Project, is fundamentally targeting remnant high grade copper and cobalt mineralization within the footwall of the historical pit left by previous miners. This work to date has essentially commenced a small cut back of the pit wall to access the high grade mineralization as evidenced by previous sampling work. Both copper and cobalt grades have been reported by TSM as high as 40% copper and 25% cobalt, however a more realistic average grade expected at the project would be 4% to 6% copper and 1% to 3% cobalt.
The current planned work program will be centered on developing a better understanding of the nature, control and style of mineralization including the geometry of the high grade shoots within the historical pit, especially the footwall zone, through a more detailed channel sampling, detailed mapping and structural interpretation program to allow targeting of future drilling programs.
Please find a picture about the work program under the following link: http://www.irw-press.com/dokumente/AFR_260310_2.pdf
The National Instrument 43-101 compliant Technical Report entitled “Luisha Copper-Cobalt Project Katanga Province Democratic Republic of Congo” dated January 25, 2010 which was prepared by Strathcona Mineral Services Limited for the Company is available on SEDAR (www.sedar.com).
Nigel Ferguson, AusIMM, President and CEO of the Company and a qualified person under National Instrument 43-101, has verified data disclosed in this release.
For more information please contact Sheryl Jones, CFO at 604-507-2181.
ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN METALS CORPORATION
“Nigel Ferguson”
Nigel Ferguson
President & CEO
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 NEW RELEASE.
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.
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA0082871041">http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA0082871041</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.