10th Feb 2015 08:08
LONDON (Alliance News) - African Minerals Ltd on Tuesday said it does not have sufficient funds on hand to meet the USD17 repayment due on its USD400 million convertible bond and said it remains in talks to secure a long-term financing deal.
The company, the operator and 75% owner of the Tonkolili iron ore project in Sierra Leone, said it does not have sufficient funds to pay the USD17 million payment due Tuesday on its convertible bond.
It remains in talks with Shandong Iron and Steel Group, its joint venture partner on the Tonkolili project, to secure a long-term financing deal. It is also in talks with other parties and said those talks include but are not limited to a partial sale of its stake in the project.
African Minerals warned that in the event no funding solution is secured, there will be little or no value to its shareholders.
Its shares are currently suspended.
By Sam Unsted; [email protected]; @SamUAtAlliance
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