Disposal of Ferrum Centrafrique S.A. to AXMIN Inc. (1193W)
25 January 2012 - 6:00PM
UK Regulatory
TIDMWAFM
RNS Number : 1193W
West African Minerals Corporation
25 January 2012
For immediate release: 25 January 2012
WEST AFRICAN MINERALS CORPORATION
("WAFM" or "Group")
Disposal of wholly owned subsidiary
Ferrum Centrafrique S.A.
to
AXMIN Inc.
West African Minerals Corporation (AIM: WAFM), the West African
focused mining investment group, today announces the disposal (the
"Disposal") by Ferrum Resources Limited ("Ferrum") of its wholly
owned subsidiary Ferrum Centrafrique S.A. ("Ferrum Centrafrique")
to AXMIN Inc., the Canadian based gold exploration company
("AXMIN") (TSXV: AXM.V).
Ferrum Centrafrique is the Central African Republic ("CAR")
registered company that has lodged exploration licence applications
for iron ore over the Topa iron belt (the "Topa Applications")
which are in the same areas licenced to AXMIN for gold exploration
(the "Topa Project"). The Topa Applications were denied by letter
dated 12 September 2011 and whilst the Group believes that the Topa
Applications were validly submitted and that Ferrum Centrafique has
a priority right to be granted exploration permits for Iron in the
application area, it has not been successful in obtaining a
revocation of that denial.
Material terms of the Disposal:
-- AXMIN has acquired all the issued and outstanding shares of Ferrum Centrafrique.
-- The Group stands to receive as deferred contingent
consideration (subject to grant of the Topa Project exploration
licences (the "Topa Licences") US$10 million satisfied by the issue
of new AXMIN shares ("AXMIN Shares"), provided that the new AXMIN
shares represent less than 9.9 per cent. of AXMIN's issued share
capital at that time.
-- The AXMIN Shares will be issued 30 trading days after any
announcement by AXMIN of the granting of the Topa Licenses. AXMIN
has a current market capitalisation on the TSX Venture Exchange of
approximately C$35 million.
-- The new AXMIN Shares will be valued at the 20-day volume
weighted average price (VWAP) of AXMIN's shares on the TSX-Venture
Exchange for the period starting five days after the announcement
by AXMIN of the grant of the Topa Licences.
-- The Group stands to receive a free carry interest in relation
to the Topa Project of US$4 million plus any balance of US$10
million not received in new AXMIN shares (subject to a maximum free
carry interest of US$10 million).
-- The Group will receive a 25% interest in Ferrum Centrafrique
following grant of the Topa Licences.
At 30 September 2011, Ferrum attributed a carrying value of
GBP13,000 to its holding in Ferrum Centrafique and has also borne
its expenses. The agreement with AXMIN announced today supersedes
the Deed of Understanding and letter of intent between Ferrum and
AXMIN disclosed in the Group's Admission Document, an electronic
version of which is available on the Group's
website,www.westafricanminerals.com.
CEO 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."
For further information:
West African Religare Capital Beaumont Cornish Evolution GTH Communications
Minerals Corporation Markets (UK) Limited Securities
Limited Limited
Denham Eke Peter Trevelyan-Clark Roland Cornish Neil Elliot Toby Hall
Emily Staples Chris Sim Suzanne Johnson
Walsh
+44 (0) 1624 +44 (0) 20 +44 (0)20 7628 +44 (0)20 +44 (0) 20
639396 7444 0800 3396 7597 5970 3103 3902
About West African Minerals Corporation
West African Minerals Corporation (AIM: WAFM) is a mining
investment company focused on iron ore exploration in West Africa.
Through its acquisition of Ferrum Resources, it holds interests in
Cameroon and Sierra Leone as well as having applications pending in
Guinea. Further information on the Group is available at
www.westafricanminerals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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