Investment in Marampa

 

TIDMAMI TIDMCLIO 
 
RNS Number : 0590M 
African Minerals Ltd 
22 January 2009 
 

For immediate release 
22 January 2009 
 
 
 
 
African Minerals Limited 
 
("African Minerals", AML or "the Company") 
 
Cape Lambert to increase investment in Marampa iron ore project 
 
 
African Minerals Limited (AIM: AMI), the mineral exploration company with 
significant interests in Sierra Leone, West Africa, is pleased to advise that, 
following its announcement on 1 October 2008, the Company has entered into a 
further agreement (the "Agreement") with Cape Lambert Iron Ore Limited ("CLIO") 
(ASX: CFE, AIM: CLIO) to increase CLIO's investment in the Company's iron ore 
project at Marampa, Sierra Leone (the "Marampa Project"). 
 
 
Under the Agreement, AML will acquire 17,000,000 fully-paid ordinary shares in 
CLIO (the "CLIO Shares"), representing approximately 3.25% of the enlarged 
issued share capital of CLIO. This acquisition is in consideration of the issue 
to CLIO of new shares (the "Marampa Shares") in Marampa Iron Ore Limited 
("Marampa"),  AML's Bermuda registered subsidiary which holds AML's mineral 
interests in the Marampa Project. The issue of the CLIO Shares will take the 
Company's interest in CLIO to approximately 11.6%. 
 
 
Following the issue of the Marampa Shares to CLIO, which represent 7.14% of the 
enlarged Marampa share capital, CLIO will hold approximately 35% of the issued 
share capital of Marampa. Under the terms of the agreement announced on 1 
October 2008, which otherwise remain unchanged, CLIO retains the option to 
acquire the (then) outstanding shares in Marampa at a price of US$200 million, 
less the aggregate of (i) US$25 million; (ii) approximately US$13.2 million, 
being the value of the 44 million CLIO Shares issued under the 1 October 
Agreement; and (iii) approximately US$3.4 million, being the value of the 17 
million CLIO Shares to be issued as at the date of the closing of the Agreement, 
based on a 5 day volume weighted average share price of US$0.20 per CLIO Share. 
 
 
By virtue of its status, before this transaction, as a 30% shareholder of an 
African Minerals Limited subsidiary, CLIO is deemed to be a related party for 
the purposes of AIM Rule 13. In accordance with the AIM Rules, the directors 
consider, having consulted with the Company's nominated adviser, that the terms 
of the Agreement are fair and reasonable insofar as its shareholders are 
concerned. 
 
 
Commenting on completion of the Agreement, Frank Timis, Executive Chairman of 
African Minerals said: 
 
 
"We are delighted that Cape Lambert has increased its investment in Marampa, 
further demonstrating their confidence in the project and cementing our 
long-term strategic relationship. We look forward to working closely with 
Cape Lambert as manager of the project, with a view to developing a substantial 
mining operation supplying the European steel market with product from 
Marampa and to maximising the value of the project for our shareholders." 
 
 
Enquiries: 
 
+-------------------------------------------+--------------------------+ 
| African Minerals Limited                  | Tel: [phone] | 
+-------------------------------------------+--------------------------+ 
| Frank Timis                               |                          | 
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|                                           |                          | 
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| Canaccord Adams Limited                   |                          | 
+-------------------------------------------+--------------------------+ 
| Mike Jones                                | Tel: [phone]     | 
|                                           | 6500                     | 
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|                                           |                          | 
|                                           |                          | 
+-------------------------------------------+--------------------------+ 
| Mirabaud Securities Limited               |                          | 
+-------------------------------------------+--------------------------+ 
| Rory Scott                                | Tel: [phone]     | 
| Pav Sanghara                              | 3360                     | 
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|                                           |                          | 
+-------------------------------------------+--------------------------+ 
| Citigate Dewe Rogerson                    |                          | 
+-------------------------------------------+--------------------------+ 
| Martin Jackson                            | Tel: [phone]     | 
|                                           | 9571                     | 
+-------------------------------------------+--------------------------+ 
| George Cazenove                           |                          | 
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|                                           |                          | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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