Ann: Marampa Infrastructure , page-15

African Minerals agrees $45m investment with Cape Lambert.

2010-07-16 15:04:05

Business Financial Newswire - African Minerals has agreed a $45m investment from Cape Lambert Resources towards developing the Marampa rail and Pepel Port infrastructure project.

Cape Lambert will fund 33% of the construction costs in return for a 33% interest in the Marampa/Pepel infrastructure. African Minerals will provide Cape Lambert with infrastructure capacity - excluding rolling stock - for 2 mtpa production from Marampa, through Pepel Port, on commercial terms to be agreed between the parties.

Cape Lambert's contribution will be fixed at $45m with a 10% discount if it pre-pays the costs.

And once the Tagrin Port and Tonkolili-Tagrin rail infrastructure for the Tonkolili iron ore mine is operational, Cape Lambert will have an option to match any third party's offer to purchase the balance of the Marampa/Pepel infrastructure, on arm's length terms to be agreed with African Minerals.

Executive chairman Frank Timis said: "We welcome the participation of Cape Lambert.

"Their $45m investment in refurbishing the Pepel to Marampa railway and Pepel Port provides funding for a small but important part of the overall infrastructure.

"It also allows the company to focus its financial and technical resources on delivering the major project to develop the Tonkolili iron ore mine and the Tagrin infrastructure through to production.

"The transaction demonstrates that third parties are able to access the infrastructure, in accordance with the company's 99 year lease agreement with the government of Sierra Leone."

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