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African Minerals secures another $6.7m

2nd February 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Another $6.7-million has been released from the Tonkolili iron-ore project’s restricted bank account in Hong Kong to pay January salaries and taxes due in Sierra Leone, embattled miner African Minerals said on Monday.

The company’s partner and 25% owner of the Tonkolili project, Shandong Iron and Steel Group (SISG) earlier this month agreed to release $12.96-million of the funds to pay December salaries and accumulated taxes due in Sierra Leone.

African Minerals warned, however, that there was no certainty of the balance of $82.4-million within the restricted bank account being released.

However, SISG and African Minerals would continue discussions regarding a long-term funding solution after Tonkolili was placed on care and maintenance in December, pending a $102-million cash payment from SISG or securing additional short-term funding.

The company would also evaluate potential funding solutions with other parties, including a partial sale of African Minerals’ stake in the project.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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