African Minerals Ltd Financing Update (6974D)

TIDMAMI

RNS Number : 6974D

African Minerals Ltd

02 February 2015

2 February 2015

African Minerals Limited

("African Minerals", "AML", or the "Company")

Financing Update

African Minerals Limited, the developer, operator and 75% owner of the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, today provides a financing update.

Further to the announcement made on 12 January 2015, regarding the release of funds from the Project's restricted bank account in Hong Kong, AML and Shandong Iron and Steel Group ("SISG"), AML's partner and 25% owner of the Project, have agreed the release of a further $6.7m. The cash has been applied to the payment of January salaries and taxes due in Sierra Leone. The remaining balance of funds within the restricted bank account is $82.4m. There can be no certainty that further releases of funds will be agreed.

Both parties continue discussions regarding a long term funding solution for the Company. Reaching that outcome remains AML's utmost priority and while the Board continues to make every effort to advance these discussions, there can be no certainty that agreement will be achieved.

The Company also continues to evaluate potential funding solutions with other parties, including but not limited to a partial sale of AML's stake in the Project.

AML's ordinary shares will remain suspended, and the Project under care and maintenance.

AML will continue to provide updates as negotiations progress.

Contacts:

African Minerals Limited

[phone]

Matthew Hird / Francis O'Neill

Tavistock

[phone]

Jos Simson / Nuala Gallagher / Mike Bartlett

Jefferies

[phone]

Nick Adams / Alex Collins

About African Minerals

African Minerals operates the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, with a JORC compliant resource of 12.8Bnt. The Project, which currently has a 60+ year mine-life, is being developed in a number of staged expansions. In 2013, African Minerals completed sales of 12.1Mt to its customers.

The Company has also developed significant port and rail infrastructure to support the operation of the Project, via its subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in which the Government of Sierra Leone ("GoSL") has a 10% free carried interest.

The Project companies are currently owned 75% by AML, and 25% by Shandong Iron and Steel Group ("SISG"), except for ARPS, which is currently owned 75% by AML and 25% by SISG, with the GoSL having the right to a 10% free carried interest from AML.

www.african-minerals.com

This information is provided by RNS

The company news service from the London Stock Exchange

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