Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Troubled miner African Minerals, which owns a 75% stake in the Tonkolili iron-ore project, in Sierra Leone, reported on Monday that its partner Shandong Iron and Steel Group (SISG) had agreed to release $12.96-million from the project’s restricted bank account in Hong Kong.
The cash had been used to pay December salaries and accumulated taxes due in Sierra Leone.
In December, African Minerals was forced to place Tonkolili on care and maintenance, pending a $102-million cash payment from SISG or securing additional short-term funding.
Negotiations were continuing between African Minerals and SISG regarding a funding solution. “These discussions remain the company's utmost priority and while the African Minerals board continues to make every effort to advance them, there can be no certainty of future releases of funds,” the company said in a statement to shareholders.
The company’s ordinary shares would remain suspended, and its operations would remain on care and maintenance until a funding solution was secured.