African Minerals Limited (AML), a Channel Islands-based iron ore miner with significant iron ore and base metal interests in Sierra Leone, West Africa, has lately announced the successful outcome of the marketing of its secured loan facility announced on November 11, 2010, with commitments received for in excess of US$370 million to date.
It is expected that the closing of the facility will occur on or about December 31, 2010 and the company retains the option to receive further commitments until closing up to the maximum facility amount of US$500 million.
Meanwhile, the compnay said that China Railway Materials Commercial Corporation (CRM), which holds 12.5 percent of African Minerals, is entitled to maintain its existing percentage shareholding in AML in respect of new equity issues on the same terms as those new equity issues.
AML has offered CRM the right to subscribe for new common shares until January 13, 2011, at the placing price of $0.425, and if exercised this would provide an additional funding of approximately US$45 million. CRM has notified AML of its intention to exercise this right subject to receiving the requisite governmental approvals.
The company believes that, following the closing of this facility, it will have sufficient funds in place to reach production under its Phase I development program.
As SteelOrbis previously reported, African Minerals announced on June 9 that an aggressive exploration program is underway to define additional hematite mineralization to underpin the expansion of the Tonkolili project to 25 million mt per year of direct shipping ore (DSO) output. The company said that it is currently on schedule to commence shipping of 12 million mt of DSO hematite product in Q4 2011.