Press release from Marketwire
Alphamin Closes Acquisition of A 70% Interest in the Bisie Tin Project in the Democratic Republic of the Congo and Concurrent $5 Million Convertible Note Financing
Thursday, August 18, 2011
Alphamin Closes Acquisition of A 70% Interest in the Bisie Tin Project in the Democratic Republic of the Congo and Concurrent $5 Million Convertible Note Financing18:39 EDT Thursday, August 18, 2011VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2011) - Alphamin Resources Corp. (TSX VENTURE:AFM) ("Alphamin" or the "Company") is pleased to announce that, further to its news release of March 31, 2011, it has closed its acquisition of a 70% interest in the Bisie Tin Project in the Democratic Republic of the Congo in consideration for the issuance of 14,000,000 shares to the shareholders of Kivu Resources Ltd. ("Kivu"). An additional 10,000,000 shares will be issuable to the shareholders of Kivu on or about March 18, 2012. An aggregate 1,200,000 shares are issuable as a finder's fee, of which 700,000 have been issued on closing, and the remaining 500,000 will be issued on or about March 18, 2012.Alphamin has also closed the concurrent Cdn$5,000,000 convertible notes private placement, which notes bear interest at 8% per annum, and will be convertible automatically into Alphamin shares on March 18, 2012 at $0.80 per share, for an aggregate 6,250,000 shares. Finder's fees of an aggregate 1,425,000 shares have been issued in respect of this placement.All securities issued are subject to resale restrictions that expire on December 19, 2011.Kivu has granted Alphamin a call option to purchase an additional 20% of the Property for a period of 3 years, the purchase price of which is payable in cash or Alphamin shares at Kivu's election and calculated based on the value of a percentage of Alphamin's issued share capital using a minimum $0.80 share price. Alphamin has granted Kivu a put option on the same terms.The Bisie Tin ProjectThe Bisie Tin Project occurs within PR 5266, one of 4 exploration permits granted to Mining and Processing Congo sprl, which is now a 70% owned Congolese subsidiary of Alphamin. All tenements are located in North Kivu Province of the east-central Democratic Republic of the Congo and lie within in one of the world's principal gold and tin metallogenic provinces. Three sets of north-south trending quartz/cassiterite veins which jointly cover 1,500 metres were identified previously from field and underground mapping and sampling of the extensive network of small scale primary workings. Veins outcrop on a ridge which continues for a minimum of 9km. There has been no drilling to date.Known tin mineralisation at Bisie occurs within 2 discrete vertically plunging high grade chutes of roughly 20m x 6m which pinch out along strike into quartz/cassiterite veins roughly 1m wide. Workings were excavated down to 80m below surface before being abandoned due to flooding and unsafe mining conditions. Grades within the chutes vary from 70-90% SnO2 and 50% within the thinner veins. Up to 0.5% rare earths – rhadophane (hydrated REE phosphate) is associated with the high grade mineralization. Bisie tin mineralization is unique in its occurrence as it is hosted within a hematite rich schist sequence situated in relatively close proximity to a granitic intrusion and is likely the result of low temperature fractionation of the granite followed by hematisation of the country rock. Soil sampling and airborne geophysical programs are planned to define the extent of tin mineralization and to identify additional high grade mineralized chutes along the 9km ridge. Drilling is likely to commence in early 2012. The appearance of rare earth elements (REE) together with very high grade tin is particularly unique in the Bisie Property and, coupled with the extent of historic artisanal mining activity, demonstrates the potential to discover a new significant compliant tin and rare earth resource on PR 5266.Little work has been done on the other three permits, PR's 5267, 5270 and 4246, and the Company will be conducting a literature search for historical data on these permits at the Belgian museum in Brussels and an airborne geophysical program will be conducted during the year.MPC was successful in imposing a force majeure on the Property in 2009, which the Company is in the process of lifting.Carl G. Verley, P.Geo, a qualified person under National Instrument 43-101, has verified technical data disclosed in this release. ON BEHALF OF THE BOARD OF DIRECTORSCosme Maria Beccar Varela, President and CEOThis 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.FOR FURTHER INFORMATION PLEASE CONTACT: 205 – 16055 Fraser HighwayAlphamin Resources Corp.Surrey, B.C. V4N 0G2(604) 507-2181(604) 507-2187 (FAX)www.alphaminresources.comNeither 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.