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Frank Timis buys London Mining Company

Frank Timis buys London Mining Company

Timis Corporation Limited, a company established and wholly owned by African Minerals Limited’s Executive Chairman, Frank Timis, has acquired the Sierra Leone mining assets of London Mining Company (LMC) from the administrator PwC. (Photo: Frank Timis)

In a statement released on Monday 2 November, the developer and operator of the Tonkolili iron ore mine in Sierra Leone, said although “the Board of AML, after careful consideration, decided on 10 October 2014 not to enter discussions to acquire the assets of London Mining” they formally allowed “Frank Timis, acting in a personal capacity as Timis Corp, to enter discussions for the acquisition if he so wished.”

Yesterday the Timis Corp announced that it had successfully acquired the Marampa Mine from the administrators, PwC. The corporation had previously informed AML that, if successful in this acquisition, it would require Timis Corp and AML to negotiate fair commercial access terms for AML’s rail and port infrastructure, owned by AML’s subsidiary African Railway and Port Services (ARPS).

“At an AML Board meeting held on 24 October 2014, the Board of AML approved Timis Corp’s access to the ARPS rail and port infrastructure for 6Mtpa of iron ore product, subject to completion of commercial terms and any regulatory approvals, including the requirements of the AIM Rules,” it said, adding that any commercial terms that may be agreed would be on an arms-length basis and would reflect standard commercial terms in the industry and would be accretive to AML.

Meanwhile, AML and Timis Corp have agreed to undertake studies regarding the possibility of blending the products from Marampa and Tonkolili, to mutual advantage, with a view to accessing European steel making markets with a suitable quality high grade product and to also capture the benefits of lower freight rates.

CEO of African Minerals, Alan Watling, said: “It is very pleasing to see that the Marampa Mine will continue to be a major source of employment in Sierra Leone. “The quick resolution by the administrators and Timis Corporation Limited has prevented the closure of an important asset for the local and national community… It is expected that, subject to the agreement of commercial terms, AML and ARPS will benefit substantially from lower infrastructure costs by virtue of higher tonnage, as well as the opportunities that will become possible through blending our combined products, accessing new markets in Europe and reducing our combined freight costs as a result, saving an estimated $12/t on current prices.”

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