Africa West Minerals Corp. ("Africa West") announces that it has entered into an option agreement dated July 13, 2009 with Providence Capital Corp. ("Providence") for Providence to acquire a 60% interest (the "Option") in the Kanweaken Mineral Exploration License currently held by Africa West. In consideration of the grant of the Option, Providence paid Africa West $25,000 upon execution of the Option. Providence will pay a further $10,000 and issue 100,000 common shares of Providence upon receiving acceptance by the TSX Venture Exchange (the "Exchange") of the Option. In order to maintain the Option, Providence is required to fulfill Africa West's obligations under the Kanweaken Licence agreement by paying certain annual renewal and rental fees of approximately $17,500 (U.S.) on or before June 9, 2010 and incurring expenditures in the minimum amount of $123,550 (U.S.) on or before June 9, 2010. If Africa West determines to abandon any concessions comprising the Kanweaken Property, the annual rental fees and expenditures will decrease correspondingly.
Providence must keep the Kanweaken Property in good standing during the option period and pay all taxes, assessments and related charges. Additionally, on the first anniversary of Exchange approval, Providence must issue 150,000 common shares to Africa West; on the second anniversary of Exchange approval, Providence must issue 200,000 common shares to Africa West; and on the third anniversary of Exchange approval, Providence must issue 550,000 shares, to earn its 60% interest.
Providence is a "capital pool company" under the policies of the Exchange and the Option with Africa West will constitute its "Qualifying Transaction" in accordance with Exchange policies. James Gillis, the President and a director of Africa West is also a director of Providence. He declared this to the board of directors of Africa West and abstained from voting on the approval of the Option.
For further information please contact: James Gillis, President
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africa West believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Africa West's management on the date the statements are made. Except as required by law, Africa West undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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.