African Minerals inks infrastructure deal with Cape Lambert on Marampa project

African Minerals Limited (AML), Channel Islands-based iron ore miner with significant iron ore and base metal interests in Sierra Leone, West Africa, has announced that it has entered into a binding agreement with Australian miner Cape Lambert Resources Limited (CLR) in respect of the development of the Marampa rail and Pepel Port infrastructure that will service CFE's planned iron ore mine at Marampa.
 
AML said that the agreement is consistent with the terms under which AML disposed of its interest in Marampa Iron Ore Limited to CFE, as previously announced on November 25, 2009 and January 25, 2010. Following the deal, CFE owns a 35 percent stake in the Marampa project.
 
CFE will fund 33 percent of the construction costs of the project in return for a 33 percent interest in the infrastructure. AML will provide CFE with infrastructure capacity for 2 million mt per annum of production from Marampa, through Pepel Port, on commercial terms to be agreed between the parties. CFE's contribution to the construction costs of the Marampa/Pepel infrastructure will be fixed at US$45 million with a 10 percent discount to apply if CFE pre-pays these costs.