African Minerals Founder Timis on the verge of buying Marampa mine in Sierra Leone

Frank Timis, the founder of Sierra Leone’s biggest iron ore producer African Minerals, is close to agreeing a deal for the purchase of London Mining’s Marampa mine, according to The Guardian.

Image credit: flickr user: London Mining:New
Image credit: flickr user: London Mining:New

To fund the purchase, Timis Mining Corporation has agreed to borrow $20 million from Australia’s Cape Lambert Resources.

According to the Business Week, the funding takes the form of a 12-month $8 million loan and a $12 million royalty purchase, which gives Cape Lambert $2 for each metric tonne of iron concentrate sold by the mine.

It is understood that Mr Timis is seeking to secure the deal through his private Timis Mining business instead of African Minerals, which is listed in London and has been affected by the Ebola outbreak.

London Mining, which was placed under administration last week due to collapsing iron prices combined with the difficulty of working through the Ebola crisis, is one of Sierra Leone’s biggest employers and contributes about 10% of the state’s GDP.

The company is building a 130-bed Ebola treatment centre near Lunsar, 60 miles east of Freetown, and has donated the equivalent of £103,000 to the Sierra Leonean effort to stop the spread of the disease.

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