evaluation-connections and prospects.

Hi All.

I have spoken before about Rio Tinto having two tenements in Gabon close to the Cameroon border.
In a report put out by Rio Tinto in June 2008 that I printed off but filed away.
Rio said about iron ore greenfield opportunities,they have in Africa on the ground activity in Mauritania,Gabon,Guinea,DRC and Cameroon.Yes iron ore activity in Cameroon as well as Alumina exploration.

I am not sure if the following was reported.
Cameroon Government to pay estimated 100 families at Kribi $20.4 million for land to be used for the port complex which is estimated to cost XAF500 billion and could be the biggest in West and Central Africa.
Payments would be made from March this year.

Think about this next one.

I have reported on this company over the last couple of months with out giving their name.

Director and executive chairman is Gordon Toll,ex Rio Tinto,BHP and previously chairman of FMG.

The largest investor in Ferrous is Harbinger Capital Partners,the New York based hedge fund who funded a lot of FMG's infrastructure needs initially.

Ferrous Resources.Private Isle of Man Registered company incorporated 2007.During 2007 and 2008,the Ferrous group of companies acquired properties in the Iron Quadrangle,Brazil.
They raised app:US$1.26 billion through private placement between June 2007 and August 2008.
Ferrous iron ore resources has JORC Code compliant 2,958 million tonnes grading 35.6%Fe Itabirite at a cut off grade of 25%Fe as at December 10th 2008 over 4 tenements.The company's properties contain an estimated target potential of a further 1,592Mt.
Ferrous is also developing a private sea port in Brazil to export its iron ore products.The mines are located from 300km to 400km from the sea.

NMDC an Indian state owned group are looking to sign a non-disclosure agreement with Ferrous group to buy a 50% stake in its Brazilian operations for $2.5 billion.
Ferrous will issue fresh shares worth $2.5 billion to NMDC over the next few years.The funds will be used for developing mines and building infrastructure.
The partners will divest a 20% stake in the joint venture to raise another $1 billion.
Once operational the mines could produce about 25 million tonne of iron ore initially that could be converted into 10 million tonne of high 67%Fe grade ore concentrate through beneficiation.
NMDC said they are also exploring joint mining opportunities with ArcelorMittal in Africa and is collaborating with Rio Tinto on exploration.
They shipped their first iron ore in the second half of 2008.

Ferrous are planning to list in London in 2010 which will value them at 3.2 billion pounds.
Ferrous have purchased coastal land for their port complex.
They are looking to build 2 slurry pipelines.
They are planning to get to 50Mtpy of iron ore.
They have bought their own Mineral Processing Test work Laboratory.
They are looking to build 3 pelletizing plants plus a conceptual engineering filtering plant with a capacity of 50 Mtpy.
They are looking to partner with steel producers in the future construction of a steel mill and appropriate infrastructure which could process the Group's and third party pellet feed fines and/or pellet production.
The Group is also exploring the possibility of developing,in partnership with third party financial and/or strategic partners and potentially as part of a steel plant project,a 200 MW to 400 MW power plant.
Any excess power generation could potentially be sold into the local power grid to off-set some or all of the power costs in connection with the operation of the mines,processing plants and ancillary services and the pipelines.

At this TIME Ferrous have 5 tenement being drilled,an option to acquire 7 mineral permits covering 13,859.73 ha and been granted 17 mineral permits covering an additional 32,557.26 ha.
Ferrous has also applied for a further 61 mineral permits covering an area of 89,099.86 ha.

Pay close attention.

During the period ended 31st December 2007,the company acquired 20% of Core Mining Limited for US$4.5 million.In addition 5% of Core Mining Limited's shares were issued directly to Lodestone Venture Limited (LVCL) as its fee for brokering the investment by the company in Core Mining Limited.LVCL is owned by Gordon Toll,a director and shareholder of the company.

The company has granted a US$10 million term loan facility to Core Mining Limited.The first tranche of US4 2.5million was drawn down under the facility on 20 November 2007.The second tranche of US$2.5million was drawn down in June 2008.The third tranche of US$2million was drawn down in July 2008.The fourth tranche of US$3million was drawn down in August 2008.The loan is unsecured,bears interest at 10% per annum and is repayable on the earlier of 36 months from the date of the agreement or within 10 days of an Initial Public offering of the shares of Core Mining Limited.

Core Mining were to list on the ASX through a reverse take over of CEO a couple of months ago but it fell through.

Just a thought that we could see Ferrous Resources getting more involved in Core Mining Limited and the one tenement they have in Gabon and Avima not far from Mbalam in The Republic of The Congo,that is only about 30kl West from Mt Nebeba and 40kl from Mbalam.

I think Harbinger Capital could be one of the US investors that bought into the last fund raising that SDL did of just over $80 million.

Regards
Westcott.