African Minerals Ltd Financing Update (9016B)
January 12 2015 - 6:04AM
UK Regulatory
TIDMAMI
RNS Number : 9016B
African Minerals Ltd
12 January 2015
12 January 2015
African Minerals Limited
("African Minerals", "AML", or the "Company")
Financing Update
African Minerals Limited, the developer, operator and 75% owner
of the Tonkolili Iron Ore Project (the "Project") in Sierra Leone,
today provides a financing update.
Further to the announcement made on 1 December 2014 regarding
efforts to secure additional short-term funding, discussions have
continued with Shandong Iron and Steel Group ("SISG"), AML's
partner and 25% owner of the Project. As part of these discussions,
AML and SISG have agreed to the release of $12.96m from the
Project's restricted bank account in Hong Kong.
The cash has been applied to the payment of December salaries
and accumulated taxes due in Sierra Leone.
Negotiations continue between AML and SISG regarding a funding
solution. These discussions remain the Company's utmost priority
and while the Board of AML continues to make every effort to
advance them, there can be no certainty of future releases of
funds.
The Company's ordinary shares will remain suspended while there
remains a fundamental uncertainty in the financial position of the
Company. The Company's operations remain under care and maintenance
until a funding solution is achieved.
AML will continue to provide updates as negotiations
progress.
Contacts:
African Minerals Limited
+44 20 3435 7600
Matthew Hird / Francis O'Neill
Tavistock
+44 20 7920 3150
Jos Simson / Nuala Gallagher / Mike Bartlett
Jefferies
+44 20 7029 8000
Nick Adams / Alex Collins
About African Minerals
African Minerals operates the Tonkolili Iron Ore Project (the
"Project") in Sierra Leone, with a JORC compliant resource of
12.8Bnt. The Project, which currently has a 60+ year mine-life, is
being developed in a number of staged expansions. In 2013, African
Minerals completed sales of 12.1Mt to its customers.
The Company has also developed significant port and rail
infrastructure to support the operation of the Project, via its
subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in
which the Government of Sierra Leone ("GoSL") has a 10% free
carried interest.
The Project companies are currently owned 75% by AML, and 25% by
Shandong Iron and Steel Group ("SISG"), except for ARPS, which is
currently owned 75% by AML and 25% by SISG, with the GoSL having
the right to a 10% free carried interest from AML.
www.african-minerals.com
This information is provided by RNS
The company news service from the London Stock Exchange
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