Proactive Investors - Run By Investors For Investors

African Iron completes DMC Mining acquisition

With A$50 million in cash, the Mayoko acquisition provides a near term iron ore development opportunity for African Iron. Mayoko boasts an established infrastructure including a heavy haulage railway to port within 2 kilometres of the project. A DSO formation provides early cash flow potential.
African Iron completes DMC Mining acquisition

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.

 

View full AKI profile View Profile

African Iron Timeline

Related Articles

Victoria Falls
October 23 2018
Premier owns 49% of RHA and has proposed a debt-for-equity swap with Zimbabwe’s indigenisation authority NIEFF to take its stake up to 90%
1538376195_lithium-100118-2.jpg
October 01 2018
The aim is to move two years' worth of ore into the indicated resource category
1539771821_Group-Eleven---directors-in-Ireland---usable.jpg
October 17 2018
Exploration efforts in Ireland are now intensifying

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use