Alphamin Resources Corp. ("Alphamin" or the "Company") is pleased to announce the conclusion of the non-brokered private placement and the completion of various technical studies to support the initiation of a definitive feasibility study (DFS).
The DFS is on track to commence end of January 2015 on its wholly owned Bisie Tin Prospect (Bisie Project) in East central Democratic Republic of Congo (DRC). Following the successful completion of the DFS, construction of the commercial underground mine at Mpama North is anticipated to commence in 2016.
The company is pleased to announce that it has completed its previously announced non-brokered private placement of equity units ("Units"). Due to demand, the size of the placement was increased from the previously announced maximum of C$15.0 million with the Company raising gross proceeds of C$15.95 million (the "Offering"). The Units were offered and sold at a price of C$0.20 per Unit with each Unit consisting of one common share and one-third of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one additional common share of the Company until December 18, 2015 at a price of C$0.25. All securities sold in the Offering, including any shares issued on exercise of the Warrants, are subject to a four month hold period in Canada expiring on April 19, 2015.
The net proceeds of the offering will be used by the Company for working capital and general corporate purposes, the completion of a definitive feasibility study (DFS), further exploration work and procurement of long-lead item's for mine construction on its Bisie Tin Prospect in east central Democratic Republic of Congo.
The cash position remains strong with over CAD$18 million of working capital available. A significant portion of spend continues to be focused on exploration and resource definition with overhead expenditure in line with industry expectations.
Alphamin has been in regular contact with key representatives of the Government of the DRC with whom a good working relationship exists. They all expressed their support to the project and to continued support in stabilizing the area of Bisie and Walikale. The local population representatives and the company have been meeting on a regular basis to develop a good working relationship.
Since drilling commenced at Mpama North in October 2014, twenty nine diamond holes for 5,703 metres were completed on the infill and deep diamond drilling programme. Visible tin mineralization (cassiterite bands and stringers) in the drill core confirmed high grade mineralization is confined to a northerly plunging chute which is open at depths below 400 metres below surface.
Previous drilling suggested that the zone of high grade mineralization used in the resource estimate of 4.01Mt @ 3.52% tin for 141,200 tonnes of contained tin was closed off to south. Drill hole BGC086 drilled to the south of the current resource area intersected a twenty metre wide zone with strong tin mineralization suggesting high grade mineralization continues southwards. The area will be drilled out as a priority as it will add significant near surface resources to the updated resource estimate planned for early in the second Quarter.
Three exploration holes for 304 metres were also drilled to test potential tin mineralization between Mpama North and South. All holes intersected mineralization within a 10 metre wide zone which will be followed up once drilling has been completed over primary resource target areas at Mpama North and South and further south along the ridge.
All samples have been submitted to ALS Chemex for assay with results expected early in the first Quarter of 2015.
The Company will now complete the infill and deep drilling programme at Mpama North following which two drill rigs will be mobilized to commence drilling at Mpama South and one rig will test potential mineralization on adjacent PR 10346 and highly significant two kilometre tin in soil anomaly identified further south along the ridge.
Soil and stream sediment sampling programmes are currently ongoing on prospective areas identified from the geophysical survey on adjacent PR 10346 and along the ridge to the south of current areas of soil sampling.
Bara Consulting (Pty) Ltd has confirmed that economic comparisons support an underground operation at Mpama North. Backfill will be used to ensure maximum recovery of the ore body left behind in support pillars. The mine plan will be re-evaluated once the resource update has been completed.
Metallurgical test work and piloting is nearing completion at Maelgwyn Mineral Services Africa (Pty) Ltd on a 7 tonne bulk sample in conjunction with Mintek, SGS South Africa (Pty) Ltd and other laboratories and equipment suppliers. A final report is due in January 2015.
Studies for the support of the DFS (definitive feasibility study) have been completed by Paradigm Project Management (Pty) Ltd. These studies include logistics and infrastructural studies, including access to site, construction facilities, employee facilities, water supply, electricity solutions, product transport and the potential for on-site smelting. These reports now form the basis for the DFS.
The studies have focused on maximizing local employment and services to create community economic development and a sustainable environment for the project area. This will be correlated with the inputs from the Socio Economic base line study of the Walikale area.
Coastal & Environmental Services Pty Ltd (CES) is completing the Socio Economic base line study for the Walikale area. This report will form the basis for Alphamin's proactive involvement with the community of the Walikale area. A delegation from the company met with leaders, spokesmen and spokeswomen of the area to further the development of a Memorandum of Understanding for collaborative economic and social development initiatives which Alphamin will be supporting.
Alphamin began supporting local schools in order to further part of the company's social development agenda to support better quality of education in the Walikale area. This will be a key area of focus for the upcoming collaboration with the Walikale community forum. Alphamin has reached out to other development, humanitarian and government representatives in the region to discuss practical collaboration and strategy around water, sanitation & hygiene, education and agriculture. Recent meetings with the Walikale community have produced initial agreements that will inform a strategy for Alphamin's community development fund.
To further Alphamin's development fund, the company is establishing the LOWA FOUNDATION with the involvement of the Walikale area community. The foundation will coordinate and run the company's socio-economic programs.
PERMITS AND TENURE:
The process of converting the Bisie PR5266 Exploration Permit into a Mining Permit PE5266 is nearing completion. The technical and environmental approvals have been granted and the approval notification has been sent by CAMI to the Minister of Mines for the minister to sign the Ministerial Decree, a legal requirement as per the Mining Code. This is the final requirement for the converting this license.
All other tenements are in a good standing and compliant with the laws of DRC.
ARTISANAL MINING & VALIDATION:
The DRC Government and MONUSCO (United Nations) have embarked on a program to validate alternate sites in the region where the artisanal miners can work; once complete these sites will conform to conflict free requirements. Bisie has been excluded from this validation zone, confirming Alphamin's tenure of the property. The local Government of North Kivu, with the assistance of international organizations, is currently finalizing the validation process for legal artisanal sites. The process will be complete in Q1 of 2015.
Since the Provincial decree to suspend all artisanal miner's activity following the attack on the camp at Bisie last year, the number of artisanal miners at Bisie has continued to decrease as they seek alternative sites.
The joint operations between the National Army (FARDC) and MONUSCO (United Nations) have been making strides to stabilizing the Walikale area. There has not been any rebel activity in the Walikale area since the attack at Bisie in July 2014.
Alphamin and its employees and contractors will conduct themselves in accordance with the Voluntary Principles. A program to disseminate training on the Voluntary Principles to all employees and contractors is being implemented. This program will be completed in the second quarter of 2015.
ON BEHALF OF THE BOARD OF DIRECTORS
Bruce Curling, Chief Executive Officer