SHANDONGIRON & STEEL GROUP SIGN VARIOUS AGREEMENTS WITH AFRICAN MINERALS FOR US$1.5BN INVESTMENT
Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE ) ("Cape Lambert" or the "Company") notes the announcement on 1 August 2011 by AIM listed African Minerals Limited (AIM: AMI) ("African Minerals") in respect of a major Chinese investment in its Tonkolili iron ore project, located in Sierra Leone, West Africa ("Tonkolili" or "Tonkolili Project") (refer Figure 1).
Tonkolili is located approximately 100km east-north- east of the Company's Marampa iron ore project ("Marampa" or "Marampa Project"), and approximately 125km east-south-east of its Kukuna iron ore project, both located in Sierra Leone (refer Figure 1).
African Minerals announced that it had executed various agreements with Shandong Iron & Steel Group Co. Ltd ("Shandon g ") to invest US$1.5 billion in return for a 25% shareholding in the Tonkolili Project. The agreement with Shandong also includes certain discounted off-take arrangements in respect of iron ore produced from Tonkolili.
A full copy of the announcement can be located on AIM or on African Minerals' website.
Cape Lambert has an agreement with African Minerals whereby African Minerals will provide third party access rights on commercial terms to transport up to 2 million tonnes per annum ("Mtpa") of iron ore production from the Marampa Project on the existing Marampa railway via Pepel Port. Cape Lambert has a right to increase this transport capacity to 5Mtpa once the Tonkolili Railway and Tagrin port are in full operation.
Commenting on the transaction between African Minerals and Shandong, Cape Lambert Executive Chairman, Mr Tony Sage, said:
"The investment by Shandong will also benefit the Marampa Project by providing funding to African Minerals to further develop the Tonkolili Project and supporting infrastructure".
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