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West African Minerals Corporation (LSE:WAFM) today announced it would let go of its wholly owned subsidiary Ferrum Centrafrique to AXMIN Inc., the Canadian-based gold exploration and mining company.
Ferrum Centrafrique is legally registered in the Central African Republic and it has built a portfolio of iron ore assets in Africa.
Reasons for the disposal
Ferrum Centrafrique has lodged an exploration license for iron ore over the Topa iron belt found in Central African Republic. This same area was licensed to AXMIN for gold exploration (The Topa Project).
West African Minerals Corporation, through its subsidiary, Ferrum Centrafrique, was denied the opportunity of mining iron ore in the area by letter dated 12 September 2011.
And, even though the Group maintained that it validly submitted its proposal to mine iron ore in the application area, it has not succeeded in getting a revocation of that denial.
Moreover, its attempts to prove that Ferrum Centrafrique has a priority right to be granted mining rights in the area have been futile.
Thus, West African Minerals resorted to selling Ferrum Centrafrique to AXMIN to allow it concentrate its efforts in other projects in Africa.
After signing the deal, AXMIN has acquired all the issued and outstanding shares of Ferrum Centrafrique from West African Minerals.
CEO comments
Chief Executive Officer and Executive Co-Chairman of West African Minerals Corporation, Stephen Dattels, said:
“With its Passendro gold project, and experience operating in CAR, AXMIN is well positioned to secure and advance the Topa project. Whilst retaining a significant interest in the project for the Group on grant of the exploration licences, the disposal allows the Group to concentrate its efforts and resources on its exciting iron ore projects in Cameroon and Sierra Leone.”
Company Spotlight
West African Minerals Corporation is a United Kingdom-based mining investment company that principally engages in iron ore exploration in West Africa. Through its acquisition of Ferrum Resources, the company increased its’ operations to Cameroon, Sierra Leone, and Guinea.
References
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