TSX VENTURE EXCHANGE: WAI
VANCOUVER, Nov. 13, 2012 /CNW/ - West African Iron Ore Corp. (TSX-V:
WAI) West African Iron Ore Corp. ("WAI" or the "Company") is pleased to
report that the Minister of Mines and Geology of the Republic of Guinea
granted the Company, on November 8, 2012 its first renewal for its
Forécariah permits, under Decree number: A 2012/10253/MMG/SGG, valid
for a period of 24 months.
(Copy of the Decree at www.westafricanironore.com/pdfs/renewal.pdf).
Update on Financing:
The renewal of these Forecariah permits satisfies the permitting
requirements of the binding Letter of Intent (the "LOI") for a CAD$30
million loan facility between the Company and Strategic Partner, China
International Fund Limited ("CIF"), as previously announced in the
Company's news release of September 4, 2012 (WAI-NR12-05).
Any debentures issued pursuant to the LOI will now be converted into
common shares of the Company at the greater of the market price of the
Company's shares at the time of issuance of the Debentures or the
conversion price of CAD$0.10 per share. CIF's aggregate beneficial
ownership of common shares of the Company may not exceed 19.9% of the
issued and outstanding common shares of the Company at the time of
CIF has already advanced the Company CAD$2 million in accordance with
the terms of the LOI. These advances have allowed the Company to pursue
ground activities, pending the signing of the definitive agreements
between the Company and CIF contemplated in the LOI.
"The signing of this decree moves us closer to our goal to become one of
the first producers of iron ore in Guinea and create substantial value
for both our shareholders and the people of Guinea. With completion of
the permitting required by our LOI, we move closer to executing the
definitive agreement, completing our maiden 43-101 resource report, and
having full access to the C$30 million loan facility. This financing
was structured to limit share dilution and provide sufficient funding
for the Company's growth over the coming two to three years.
The board and management of the Company wish to extend their sincere
appreciation to the Republic of Guinea and, in particular, to the
Minister of Mines and Geology, His Excellency Mr. Lamine Fofana, for
his diligence and continuous support of the development of Guinea's
mining sector. The mining sector has substantially benefitted from his
vision and foresight into the daily challenges junior companies face in
this highly competitive and changing market place" commented Guy Duport, CEO of West African Iron Ore Corp.
Forécariah Licenses Renewed:
The three renewed exploration licenses held by WAI's wholly owned
subsidiary Sky Alliance Ressources Guinée S.A. ("SARG"), cover an area
of 1,050 km² in the province of Forécariah. SARG has a management
office in Conakry, the capital city of the Republic of Guinea,
maintains and manages ground operations on the property from
exploration bases in the city of Forécariah and a base camp near the
village of Bokaria.
The Forécariah licenses are strategically located 35km from the proposed
deep-sea ports of Kabak and Matakan. Rail lines access will lie within
the boundaries of our licenses. See map of Proposed Infrastructures
locations, courtesy of the "Centre de Promotion et de Developpement Miniers" ("CPDM") at link near the end of this release.
For a larger view please click on this link: www.westafricanironore.com/pdfs/TIM.pdf
Update on Maiden NI43-101:
The recent drilling program from the Wondima target will form the basis
of the Company's maiden NI43-101 resource report, anticipated to be
completed by year's end. The Company intends to release its NI43-101
report once comprehensive metallurgical test has been completed. Other
potentially exploitable minerals have been discovered on the properties
and the Company is currently assessing the potential for these minerals
to be incorporated into a resource report. SRK Consulting (UK) Limited
has completed a full QA/QC analysis of the drilling and assays
database, as well as, a site visit to the Wondima target in early
About China International Fund Limited:
CIF is headquartered in the Hong Kong Special Administrative Region of
China, and has investment footprints in three continents.
With the strength of its experience in large-scale infrastructure
development in Africa, CIF is in a position to accelerate the iron ore
exploration and production goals of WAI, having recently built road
access within the boundaries of the Company's Forécariah permits to
provide access to the barging port of Konta.
CIF has a vision for Africa: Through South-South cooperation and in
partnership with private industry and the government, CIF will develop
public transport infrastructure such as road, rail, seaports and
airports to improve connectivity and accessibility, as well as public
utilities, agriculture, aqua culture, public housing, construction
materials and mining projects, where its commercial objectives are
aligned with the needs of countries to develop the economy and improve,
ultimately, the living standards of the people.
ON BEHALF OF THE BOARD
About the Company:
West African Iron Ore Corporation is dedicated to the sustainable
development of its mineral resources in the Forécariah provinces of the
Republic of Guinea. We nurture a harmonious working relationship with
the local community and the Guinean authorities. We advocate the
minimization of environmental impact and the promotion of economic
opportunity for all our stakeholders.
Our phased exploration program aims to establish the existence of
minable iron ore mineral reserves in sufficient quantities to permit
viable production of iron concentrate and other mineral deposits.
Jonathan Challis, FIMMM, is a qualified person under National Instrument
43-101, and has reviewed and is responsible for the contents of this
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties, certain of which are beyond
the control of the Company including, but not limited to, the impact of
general economic conditions, industry conditions, volatility of
commodity prices, risks associated with the uncertainty of exploration
results and estimates and that the resource potential will be achieved
on exploration projects, currency fluctuations, dependence upon
regulatory approvals, the uncertainty of obtaining additional financing
and exploration risk.
Readers should also refer to the specific factors disclosed under the
heading "Risk Factors" in the Company's filings with Canadian
securities regulators. Such information contained herein represents
management's best judgment as of the date hereof based on information
currently available. The Company does not assume any obligation to
update any forward-looking statements, save and except as may be
required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Image with caption: "Proposed Infrastructures locations, courtesy of the "Centre de Promotion et de Developpement Miniers" ("CPDM") (CNW Group/West African Iron Ore Corp.)". Image available at: http://photos.newswire.ca/images/download/20121113_C7324_PHOTO_EN_20533.jpg
SOURCE: West African Iron Ore Corp.
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