3rd Dec 2008 11:49
3 December 2008
For immediate release
African Minerals Limited
("AML" or the "Company")
London Mining Announcement
African Minerals Limited (AIM: AMI), the mineral exploration company with significant interests in Sierra Leone, West Africa, has had its attention drawn to a trading update released by London Mining plc ("London Mining") on 28 November 2008. That update referred amongst other things to the lease of the Pepel port and the Pepel to Marampa railway entered into between the Government of Sierra Leone ("GoSL") and AML on 6 November 2008 (the "Lease Agreement"), and which was announced by AML on 12 November 2008.
In the update London Mining stated that it:
"...is not satisfied with the due process for this award due to its own pre-existing agreement with the Government."
AML is satisfied that the processes followed in respect of the award of the Lease Agreement were entirely correct and legally compliant. Moreover the Memorandum of Understanding ("MoU") between the Company and the GoSL, announced to the market on 6 May 2008, contained the following provisions:
" GoSL has therefore agreed to grant to AML ....an exclusive lease of the Facilities ....
...which agreements replace and supersede all previous leases, licences and/or other agreements, if any, in respect of the Facilities and/or any parts thereof...."
The GoSL has confirmed to the Company in writing that the "Memorandum of Understanding" signed by London Mining and the then Minister of Mineral Resources of the GoSL on 27 August 2007 has lapsed and has been superseded by the MoU and the Lease Agreement.
AML is therefore confident that the Lease Agreement is valid and binding and supersedes any previous agreement that may have been entered into regarding the port and railway infrastructure.
AML also notes that on 27 November 2008 the GoSL gave London Mining written and immediate Notice to Quit any premises in the port and railway area that are the subject of the Lease Agreement. In their letter of 27 November 2008, copied to representatives of the GoSL and to the Company, the GoSL also stated that:
"The [Lease] Agreement, among other things, provides for African Minerals to have free access to the facilities at the Port and Railway at Pepel, without let or hindrance."
Enquiries:
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African Minerals Limited |
Tel: +44 (0) 20 7849 3002 |
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Frank Timis |
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Canaccord Adams Limited |
Tel: +44 (0) 20 7050 6500 |
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Mike Jones |
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Mirabaud Securities Limited |
Tel: +44 (0) 20 7878 3360 |
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Rory Scott |
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Citigate Dewe Rogerson |
Tel: +44 (0) 20 7638 9571 |
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Martin Jackson |
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George Cazenove |
Related Shares:
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