The major US$990m proposed strategic investment confirms the US$6Bn valuation of Tonkolili project in Sierra Leone.African Minerals has entered into a strategic, binding memorandum of understanding with Tianjin Materials and Equipment Group Corporation (Tewoo) in respect of African Minerals’ flagship iron ore project at Tonkolili, Sierra Leone, and its related infrastructure projects. “African Minerals is delighted with Tewoo‘s intended investment at both the African Minerals and operating company levels. With African Minerals‘ history of successful relations with Chinese industrial entities, I am confident that this transaction will be successfully completed,” says Frank Timis, executive chairman of African Minerals.
“Once completed, this transaction will provide African Minerals with almost a billion dollars of additional funds at the corporate level, significantly strengthening our balance sheet and will provide flexibility in financing options for the company’s future development. Tewoo‘s offer to subscribe to African Minerals‘ equity at approximately £7 per share will provide a strong endorsement of the company’s value to the market.“Furthermore, Tewoo‘s partnership would also provide additional guaranteed long term offtake for our product… [and] we will have almost all of the Tonkolili project’s production committed for the next 20 years.”