AMM acquires 100% of Forward Africa Resources
Anglo-African Minerals Plc acquires a further estimated 300 million tonne Bauxite resource in Guinea
The Directors of Anglo- African Minerals plc ("Company"), the dedicated bauxite exploration and development company is pleased to announce the acquisition of Forward African Resources S.A. ("FAR").
The transaction requires the Company to issue 6.15 million ordinary shares to the shareholders of FAR, with no cash consideration. Additionally, following completion, Michel Pothier of FAR will join the board of the Company.
FAR owns a Bauxite exploration project in southern Guinea at Samaya and Dubreka (Licence 223). The bauxite exploration licence covers approximately 350 km2 and is about 15 km from rail transport and some 110 km from the port of Conakry. Previous exploration and recent work indicates potential reserves of at least 300 million tonnes of export quality bauxite.
The Company's plan is to bring the current resource estimate up to Canadian (NI43-101) compliant standards and then to fast-track a definitive feasibility study in order to conclude an exploitation permit from the Guinean Government by the end of 2013. Production is planned to begin by mid to late 2014.
As with all bulk commodities logistics and transportation of raw material to international markets is a prerequisite to the realisation of value. The FAR resource will allow for early stage production due to the proximity of infrastructure.
Anglo African Minerals current owns a licence near the town of Tougué, some 85km east of Labe in central Guinea. Extensive drilling by Allusuisse and the Government delineated over I billion tonnes in accordance with Soviet resource code C1,C2 and P1. AAm is in the process of verifying this work, and has undertaken over 10,000m of drilling on just 3 out of the 11 principal bauxite plateaus within the Toubal licence. Access to this licence is expected to be available via the government planned rail track by late 2015 or early 2016.
Mr Michael Smith, Chief Executive Officer said "This acquisition represents a step change to our investment and support in Guinea and West Africa in general. In being able to make cost effective use of infrastructure, which substantially reduces the investment risk between resource and customer, the FAR project can be brought into production within 18 to 24 months. This will create value not only for AAM shareholders but also for all stakeholders, notably the government and people of Guinea."