26th Sep 2013 07:47
LONDON (Alliance News) - African Minerals Limited Thursday said it has entered into a an agreement for investment at its flagship Tonkolili iron-ore site.
The minerals exploration-and-development company with operations in Sierra Leone said that Tianjin Materials and Equipment Group Corporation agreed to pay AML USD990 million for a 16.5% economic interest in the project based on a site valuation of USD6 billion.
AML said that Tianjin Materials also secured a 20-year offtake agreement with AML, and the two companies agreed to start a joint venture to market iron-ore via the city of Tianjin in northern China.
The consideration has two processes, the first is a subscription in AML for the gross proceeds of USD390 million after which Tianjin Materials will hold 10% of AML, and secondly a sale of 10% of AML's interest in the project companies to Tianjin Materials for USD600 million in cash.
AML shares were up 50% to 235.00 pence in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
AMI.L