VANCOUVER, BRITISH COLUMBIA--(Marketwire -07/24/12)- Alphamin Resources Corp. (AFM.V) ("Alphamin" or the "Company") is pleased to announce that it and its British Virgin Islands subsidiary ("Alphamin BVI") have exercised their option under their agreement with Kivu Resources Ltd. ("Kivu"), dated March 18, 2011 as amended, to acquire an additional 20% of Mining and Processing Congo Sprl ("MPC"), the company that is the registered owner of the licences covering the Bisie Tin Project in the Democratic Republic of the Congo, by the issuance of 19,335,747 Alphamin shares. This will increase Alphamin BVI's ownership of MPC to 90%. Kivu has instructed Alphamin to issue the shares to 12 of its shareholders.
Furthermore, Alphamin and Alphamin BVI have entered into an agreement with Kivu to acquire the final 10% of MPC, such that Alphamin BVI will own all of the issued shares of MPC, in consideration for the issuance of an additional 9,664,253 shares to Kivu or its nominees.
Both transactions will result in an aggregate 29,000,000 shares (the "Shares") being issued and both are subject to the approval of the TSX Venture Exchange. Upon the issuance of the Shares, Alphamin will have issued and outstanding 103,444,571 shares.
In addition, warrants to purchase up to 2,400,000 shares of Alphamin at $0.80 for a period of one year from the date the last of the Shares are issued will be granted as a finder's fee, subject to the approval of the TSX Venture Exchange.
Cosme Beccar Varela, Alphamin's President and CEO, stated: "We are very pleased that Alphamin is acquiring 100% control of the Bisie Tin Project, which will facilitate our exploration and development of this important property."
The Bisie Tin Project
The Bisie Tin Project is located within the Walikale District roughly 140 km west-northwest of the regional centre of Goma which is located on the border with Rwanda, which has excellent infrastructure being one of the best developed countries in Africa.
Tin was first discovered at Bisie in 2004 and was mined illegally until recent times. The occurrence is unique with grades of 50-95% SnO2 (tin oxide - cassiterite) reported from high grade chutes which attracted a large informal mining and support community. This potential grade is conceptual in nature. Insufficient exploration has been done to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Government imposed a moratorium on small scale tin mining in 2010 which saw a mass movement of people off the Property thereby creating a favorable environment for the Company to acquire ownership and commence detailed exploration programs.
The Company announced on 9th July 2012 that it has commenced drilling on the Bisie Project with first results expected in August 2012. An initial drilling program of 2,800 metres will test the two main zones worked extensively by artisanal miners roughly 100m vertically below surface. Holes will cover 700m of delineated tin mineralisation.
A second more extensive phase of drilling will be planned according to results of the first phase of diamond drilling.
Tin mineralization is within a set of north-south trending quartz/cassiterite veins in schists exposed over 1km along a ridge which transgresses the project for more than 9km. Initial drilling indicates that veins lie within a 30m wide mineralized zone enriched in quartz, chlorite, cassiterite, pyrite and chalcopyrite.
The Company will initiate a soil sampling program along the 9km ridge which will identify any additional zones of tin mineralization.
Alphamin has an experienced management team in place, has set up an office in Goma and has established an exploration camp at Bisie to accommodate exploration staff.
Lars Pearl, 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", President and CEO
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