30th Mar 2015 07:38
LONDON (Alliance News) - Ferrex PLC on Monday said it has concluded the mining convention negotiations for the Nayega Manganese Project in northern Togo and said the latest test results for the project indicate significantly lower capital and operating costs.
Ferrex said talks between it and the Togo government have concluded regarding the mining convention for Nayega, with the document published outlining the contribution the project will make to community development, skills transfer and fiscal incentives it will receive.
The company said the next step is the grant of an exploitation licence, which it hopes will be approved before the end of the second quarter of this year.
Ferrex said it is focused on an accelerated start-up at the project, with a target to export 250,000 tonnes a year of manganese ore. It said the initial numbers indicate a significantly lower capital and operating costs estimate for the project, though the final costing inputs are expected to be published in April.
It remains in talks with a number of parties to secure financing for the project development and is holding talks with potential off-take partners.
"We have made some major advances in progressing the Nayega Manganese Project towards development over the last two months. The recent conclusion of the company's detailed negotiations with the government's appointed representative group, Point Focal, is a significant step forward and we are pleased to have achieved a win-win outcome for both parties," said Ferrex Managing Director Dave Reeves.
Still, Ferrex shares were down 14% to 0.623 pence early Monday, one of the worst performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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