Photo by: Reuters
JOHANNESBURG (miningweekly.com) – Aim-listed Ferrex is on the hunt for another strategic funder for its Mebaga iron-ore project, in Gabon, after a proposed funding transaction with Anglo American and Kumba Iron Ore dissolved this week.
The iron-ore and manganese development company said in a statement that despite the conclusion of successful legal and technical due diligence and Gabonese Ministry of Mines and Ministry of Commerce approval, the parties had decided not to pursue the proposed funding transaction.
“The termination of this term sheet is obviously disappointing considering the significant amount of work that went into successfully completing the due diligence and obtaining all necessary government approvals,” commented Ferrex MD Dave Reeves.
“Based on the successful completion of all other conditions precedent and the lack of guidance from the parties, we can only surmise that the reason for termination was a change in strategy at the corporate level,” he added.
However, with the increasing commercial attraction of direct shipping ore projects in Gabon, the highly strategic geographic position of Mebaga and the recent transactions that had taken place in Gabon, including Assmang's proposed $19.8-million investment in Australia-based IronRidge Resources, Ferrex was confident of securing another funding transaction and expected discussions with other strategic funders to be concluded in time to allow drilling to start in the next dry season.