6th May 2008 12:02
African Minerals Ltd06 May 2008 06 May 2008 African Minerals Limited ("African Minerals" or the "Company") Key Infrastructure Memorandum of Understanding African Minerals Limited (AIM:AMI), the mineral exploration company withsignificant interests in Sierra Leone, West Africa, is pleased to announce thatit has entered into an exclusive Memorandum of Understanding ("MoU") with theGovernment of Sierra Leone ("GoSL"). In accordance with the terms of the MoU the Company and the GoSL will enter intoexclusive leases and operating agreements under which: O The Company will undertake an engineering study to upgrade the deep waterport at Pepel ("the Port") assuming a handling capacity of up to 25 milliontonnes per annum to meet import and export requirements, including those ofthird parties. Subject to the results of the study the Company will upgrade thePort, which it will then maintain and operate on a commercial basis; O Having identified a need for enhanced carrying capacity and improvedtransport services in general, the Company will engage engineering consultantsto complete a study examining the feasibility of upgrading the existing railwaybetween the Port and Marampa ("the Railway") from narrow gauge to standardgauge. Subject to the results of the study the Company will upgrade the Railway,which it will then maintain and operate on a commercial basis; O The Port and the Railway would be made available at commercial rates toother users including mining companies and general cargo and passengertransporters; O Subsequent to receipt of satisfactory engineering and feasibilitystudies, the Company will construct and manage an extension of the Railway tothe Company's flagship iron ore project at Tonkolili, enabling the Companyefficiently and cost effectively to transport its iron ore production to thePort for export to international markets. Bumbuna Hydro-Electric Scheme The MoU also provides that in co-operation with the Bumbuna Power Authority andthe GoSL, and concurrently with preparation of the Tonkolili feasibility study,the Company will commission an engineering study on the Bumbuna hydro-electricpower source ("the Power Source"). The Power Source is located approximately20kms from the Tonkolili project. As well as providing additional power generation capacity for nationalrequirements, the aim of this study will also be the upgrading of the generatingcapacity of the Power Source and the construction of power transmissionfacilities to enable the Company's Tonkolili iron ore operations to benefit fromaccess to a secure and uninterrupted power supply. Commenting on the MoU, Mr Frank Timis, Executive Chairman of the Company said: "We are delighted to be embarking on the next phase of our strategic plan tobecome a diversified minerals producer. The MoU underlines the Company's strongworking relationship with the Government of Sierra Leone and commitment toimproving the country's infrastructure whilst securing the rail, port and powercapacity requirements for our iron ore projects. Exploration results to datesuggest that the Tonkolili project has the potential to be a world class ironore deposit. We welcome the continued support of the government in helping us torealise that potential, bringing positive benefits to the economy and improvingthe standard of living for the people of Sierra Leone." Enquiries: African Minerals Limited Tel: +44 (0) 20 7849 3002Frank TimisRoy Pitchford Canaccord Adams Limited Tel: +44 (0) 20 7050 6500Mike JonesRobin Birchall Mirabaud Securities Limited Tel: +44 (0) 20 7878 3360Rory Scott Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571Media enquiries: Martin JacksonAnalyst enquiries: Kate Delahunty This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AMI.L