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Sphere to sell 80% stake in Mauritania project

15th September 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The ASX-listed subsidiary of Glencore, Sphere Minerals, has executed an exclusive option to Al Rawda Resources to buy an 80% interest in its Askaf project, in Mauritania.

The agreement would see Al Rawda pay $10-million in cash, along with a life-of-mine royalty of 2.5% on the revenue generated at the project.

The cash consideration would be payable in three tranches, with the first tranche due on the completion of transaction documents, the second on the decision to mine and the last payment on the start of production.

Al Rawda would now have three months in which to undertake a due diligence and decide on whether it would exercise the option.

A continued decline in the iron-ore price prompted Sphere in 2014 to abandon plans to develop the $900-million Askaf project, which had originally been slated to start production in 2017.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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