Africa West Minerals Corp. (the "Company") has arranged a non-brokered private placement of up to 2,000,000 units of the Company (the "Units") at a price of $0.06 per Unit for aggregate proceeds of up to $120,000. Each Unit will consist of one common share in the capital of the Company and one non-transferable share purchase warrant, each warrant entitling the holder to purchase one additional common share at a price of $0.10 per share for a period of two years from the completion of the offering, subject to accelerated expiry in certain circumstances. Shares acquired by the placees, and shares which may be acquired upon the exercise of the share purchase warrants, will be subject to a hold period of four months plus one day from the date of completion of the financing in accordance with applicable securities legislation. Finder's fees in amounts yet to be determined may be paid to persons who introduce the company to investors. Funds raised by this private placement will be used for general corporate purposes.
The Company also announces that upon completion of the financing described above, it will effect, subject to shareholder and regulatory approval, a consolidation of its issued common shares on the basis of 2 old shares for 1 new share. The Company intends to call a special shareholder's meeting on or about April 15, 2010 to seek shareholder approval of the consolidation.
Concurrently with the consolidation referred to above, the Company also intends to change its name, further details of which will be announced when available.
The Company will continue to focus its efforts on project generation in Sub-Saharan Africa, where the directors and management have expertise. The Company's intention is to attract and engage partners to fund exploration and development on its projects, thereby maintaining a close and undiluted share structure.
The Company currently has about 1700 square kilometres of gold exploration properties located in Kenya, Tanzania and Liberia.
Ngira Migori Gold Project, Kenya East Africa
Red Rock Resources, PLC has agreed to earn in to 70% of the 320 square kilometre Ngira Migori gold project, located in southern Kenya. Red Rock is currently exploring and evaluating the Mid-Migori and Macalder Mine properties adjacent to Africa West's Ngira-Migori project. Red Rock's public disclosure documents indicate that this adjacent property holds a 43-101 compliant resource estimate completed by Kansai Mining in 2006 which established that the 4 main zones of gold mineralization contained 33 million tonnes @ 1.10 g/t Au for 1,172,000 ounces indicated resources.
Previous exploration work at Ngira-Migori has included reconnaissance geological mapping and soil sampling over the central portion of the property where current artisanal mining is taking place. The soil sampling has indicated several areas of gold in soil anomalies. Mineralization in this area is characterized by gold in quartz reefs as well as gold associated with massive to disseminated sulphides. The lithology of the area includes greywacke, tuffaceous volcanics and Banded Iron Formation. Surface grab sampling at two of the mineralized reefs returned from 30ppb to 16.7 gAu/t (grams of gold per tonne).
Rosterman Gold Mine, Kenya East Africa
Under a recent MOU signed with Equatorial Mining Ltd, owned by Maris Africa, a UK managed African investment fund (http://www.mariscapital.co.uk/maris-africa-fund), Equatorial will evaluate the extensive surface tailings left from the former producing Rosterman Gold Mine. Africa West Minerals owns 100% of the Rosterman Mine which was acquired from the Government of Kenya in 2008. If Equatorial proceeds with the program to recover the gold in the tailings, Africa West will receive a 5% Net Smelter Royalty.
Historical records indicate that the Rosterman Mine operated between 1935 and 1953 and recovered over 250,000 ounces of gold at an average grade of 13.6 gAu/t. Africa West has compiled a significant amount of historical data on the Rosterman and has produced a three dimensional development plan of the mine. The next stage of work at Rosterman will entail a 43-101 compliant technical report to propose the next stages of evaluation and development.
Bukura and Sigalagala Gold Properties, Kenya East Africa
These two 100% owned properties have a combined size of 48 square kilometres and are in close proximity to the Rosterman Gold Mine property. The 2 areas contain over ten colonial minesites that exploited gold between 1930 and 1950. Most of these sites had developed shafts and extensive underground workings. The geology in this Kakamega greenstone region of Kenya is Archean aged with a structural setting similar to the Abitibi in Canada. Africa West Minerals is in the process of documenting the historical data associated with the colonial aged mines. A technical report will be commissioned on these two properties in concert with the Rosterman property.
Ugunja Option, Kenya East Africa
The 823 square kilometre Ugunja licence is located at the western edge of the Kakamega greenstone belt, adjacent to the border with Uganda. This area contains similar geology and structure as the Rosterman Mine, located 25km to the east. Previous work on the Ugunja Licence includes local soil and termite mound sampling which has identified several areas of anomalous gold. The eastern half of the project area represents the highest priority for further soil sampling, mapping and trenching. This large project area requires a $200,000 2 phase program to define drill targets.
Sotik Application, Kenya East Africa
The Sotik project is a 483 square kilometre property that is in application with the Kenya Government. The project area lies on the eastern edge of the Nyanzan Greenstone belt in Southern Kenya. This project area has not seen any modern exploration and requires a first phase regional mapping and sampling program to prioritize any follow-up work.
Nyakagwe Project, Tanzania East Africa
The Nyakagwe Gold Project is located 6km north west of Barrick's Bulyanhulu Gold Mine and contiguous with Lakota Resources' Tembo Project. Africa West Minerals, through their wholly owned subsidiary Gold Rim Exploration Inc. is earning 100% of the Nyakagwe project by bringing the property to the Mining Licence category. The project consists of 46 Primary Mining Licences that have been put together by a local artisanal mining cooperative. A prospecting licence has recently been granted adjacent to and surrounding the Nyakagwe group which will increase the landholdings in an extremely strategic area.
As previously announced, a 1400m Aircore and RC drilling program was completed in 2008 that confirmed gold mineralized quartz reefs at depth. Hole NY012 intersected quartz reef from 22m to 26m down the hole and returned 7.03 gAu/t over 4 meters including 17.75 gAu/t over 1 meter.
Kanweaken Project, Liberia West Africa
The Kanweaken gold project in Eastern Liberia is currently under agreement with Providence Capital who may earn up to 60% of the project, by incurring exploration expenses and maintaining the project in good standing. Africa West understands that the country of Liberia is undertaking changes to its mining laws under a new government which will result in positive changes to the country's economy in general.
Africa West had undertaken extensive regional exploration in Eastern Liberia during recent years resulting in the retention of 250 square kilometres of gold prospective ground. Exploration to date has identified a corridor of mineralization up to 19 kilometres long, defined by artisanal mining sites and gold in soil anomalies.
The technical content of this news release has been prepared under the supervision of Jeffrey Ackert, VP Business Development and Exploration of the Company who is a Qualified Person under National Instrument 43-101.
For additional information, please contact:
James T. Gillis, President
Telephone: (250) 314-0186
Jeffrey S. Ackert, VP Business Development and Exploration
Telephone: (613) 851-7699
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 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. 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, except as required by law.
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