With conditions met including raising A$96 million through a placement, African Iron (ASX: AKI) (previously Stirling Minerals) has completed the DMC Mining acquisition from Cape Lambert Resources (ASX: CFE).
The DMC Mining principal asset is an 80% interest in the Mayoko Iron Ore project, which represents a near term development opportunity in an emerging iron ore province in West Africa.
Of major importance in the remote and often underdeveloped Republic of Congo, Mayoko has excellent infrastructure endowment with a nearby underutilised, heavy haulage mineral railway passing within 2 kilometres of the main prospect at Mt Lekoumou, and terminating at the port of Pointe Noire on the Atlantic Ocean.
African Iron has around $50 million in cash, providing sufficient funding to complete the proposed drilling program and feasibility assessment of developing the oxide cap at an initial rate of 5 million tonnes annually of direct shipping ore.
The company has already secured two drill rigs and will commence a drilling campaign in February.
African Iron was previously named Stirling Minerals, with African Iron anticipated to begin trading on the ASX on Thursday 13 January.
With the company now having a predominately iron ore focus, changes at the top to reflect this has meant the board now comprises; Ian Burston as non-executive chairman, with current Cape Lambert executives Joe Ariti and Tony Sage as non-executive directors.
Ariti will act as the chief executive officer until the appointment of the managing director.
African Iron received shareholder approval to proceed with the acquisition of DMC Mining in December 2010.