Ann: Marampa Infrastructure , page-19

Roundtable ,CFE will have the rights to at least 2m t for not only the rail line ,but for the Pepel port infrastructure .I am sure that they will be able to ship much more than that depending on availability at the time .The Rights just guarantee them 2mt ,but doesnt exclude them from using more .

The important thing is, they not only have the rights to 2m t pa , but they will actually OWN 33% of the railroad ,AND the port infrastructure !!!,a valuable asset in its own right ,and worth much , much more than the $45m they will be paying .They are buying a stake in a railroad and port ,for the cost of a refurbishment .

Longer term, this option to buy the complete railroad ,and infrastructure ,will be a huge bonus to any potential buyer of Marampa .This will give Marampa a organic growth option for the future .

Most Iron Ore miners dont own their railways ,or even a part of it ,or the port .So this gives Marampa something special to offer ,control of their infrastructure .By owning the rights means CFE wont have to pay the freight rates that many miners do .This will reduce their cost per tonne ,FOB substantially for at least $2m t pa .

CFE will be buying a 33% ownership of an 84km railroad for $41m after discount .

New construction costs for even a basic railroad can cost $10-15m per km .

CFE will be paying a miserly $1.5m per KM for their 33% .

Taken as an asset on its own this infrastructure ownership is an amazing bargain .Taken as a package ,the ownership of the Marampa deposit along with 33% of the infrastructure will be very attractive when compared to many IO juniors that dont have this luxury.