Alphamin Enters into Agreement to Acquire the Bisie Tin Project in the Democratic Republic of the Congo and Organizes $ 5 Million Financing
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News Release 2011-03
ALPHAMIN ENTERS INTO AGREEMENT TO ACQUIRE THE BISIE TIN PROJECT IN THE DEMOCRATIC REPUBLIC OF THE CONGO AND ORGANIZES $ 5 MILLION FINANCING
Vancouver, Canada – March 31, 2011 – Alphamin Resources Corp. (AFM: TSXV) is focused on the exploration and development of its base metal properties in Mexico and Argentina. In order to diversify its activities, Alphamin is pleased to announce that it has now entered into an agreement with Kivu Resources Limited (“Kivu”), a company that is arm’s length to Alphamin, to purchase a 70% interest in the Bisie Tin Project (the “Property”) in the Democratic Republic of the Congo in consideration for the issuance of 14,000,000 shares on closing (the “Acquisition”). An additional 10,000,000 shares will be issuable to Kivu within thirty business days of the conversion of the convertible note referenced below.
Subject to the closing of the Acquisition, Alphamin shall complete a financing to raise Cdn$5,000,000 by the issuance to a party or parties arm’s length to Alphamin and Kivu of Cdn$5,000,000 in convertible notes (the “Financing”), which will bear interest at 8% per annum, will be repayable one year from the date of issuance, and will be convertible into Alphamin shares not later than twelve months after the issuance of the notes at $0.80 per share, for an aggregate 6,250,000 shares.
Kivu has also 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.
Finder’s fees will be payable with respect to the Acquisition and the Financing.
Alphamin has a fully diluted share capital of 37,769,571 shares at this time.
The Acquisition and the Financing are subject to Exchange approval, and are also subject to other conditions, such as due diligence to be conducted by Alphamin on the Property.
The Bisie Tin Project
The Bisie Tin Project consists of 4 exploration permits located in North Kivu province of the Democratic Republic of the Congo. Mineralization on the permits consists of cassiterite and rare earths in quartz veins hosted in a schist sequence that is situated in relatively close proximity to a granitic intrusion. Preliminary inspections of the properties lead the Company to believe that there is potential to develop a tin deposit on the permits. Artisanal mining activity on some areas of the permits demonstrates the significant nature of this relatively new tin and rare earth discovery. Investors are cautioned that the
Company needs to conduct extensive due diligence on the Property in order to better determine its potential, the results of which will be disclosed in due course.
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 DIRECTORS
“Cosme Maria Beccar Varela”
Cosme Maria Beccar Varela, President and CEO
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