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 exercise.
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 September.
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 news release.
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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