12th Jan 2015 11:04
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
Related Shares:
AMI.L