PERTH (miningweekly.com) – ASX-listed TerraCom is continuing its acquisition spree in Africa, with the company signing a binding term sheet for the acquisition of bauxite developer Anglo African Minerals (AAM).
AAM’s bauxite resources are located in the Republic of Guinea, consisting of three development projects, including the 70-million-tonne Forward African Resource (FAR) project, the 450-million-tonne Societe Miniere d’Alumine (Somalu) project, and the 865-million-tonne Tougue Bauxite and Alumina Corporations (Toubal) project.
TerraCom told shareholders on Monday that the company’s initial focus would be on the development of the FAR project, which is situated in close proximity to existing rail infrastructure, allowing for the completion of an export supply chain. The project is expected to be in production at an initial rate of three-million tonnes a year, between 13 and 16 months from the start of development activities, increasing to five-million tonnes a year over the subsequent 12 months.
“This is a very sensible deal for TerraCom shareholders and endorses our entry into Africa to further diversify our geographic and commodity base through an exciting and highly rewarding emerging market sector,” said TerraCom chairperson Wal King.
The acquisition of AAM is subject to customary conditions precedent, including a due diligence and regulatory approvals. In return for an exclusivity period until the end of August this year, TerraCom has agreed to pay a $500 000 refundable deposit over all the AAM assets.