On November 24, Switzerland-based mining company Xstrata Plc announced that it has entered into an agreement with Jumelles Limited (Jumelles) in respect of the early stage Zanaga iron ore project in the Republic of Congo.
Accordingly, Xstrata will fund a minimum of $50 million towards ongoing exploration and a pre-feasibility study in return for an option to acquire a 50 percent plus one share interest in Jumelles, the owner of the project.
If Xstrata elects to exercise the option it will fund a feasibility study and associated costs. The agreement also includes a pathway for Xstrata to acquire 100 percent of the project following completion of the feasibility study.
A recently completed order of magnitude study for the project indicates its potential to become a world class iron ore operation. The project is located in the Lékoumou district of the Republic of Congo, approximately 300 km northeast of Pointe Noire.