African Minerals Ltd announced the launch of a book build offering of up to USD 350 million of Convertible Bonds due 2017. The Company intends to use the net proceeds of the Offering primarily for the continued expansion of production at its Phase I Tonkolili iron ore operation to 20 million tonnes per annum.

The Bonds will be issued at par by the Company. The Bonds are expected to have a coupon of 8.50% payable semi annually in arrear and will be convertible into fully paid ordinary shares of the Company. The conversion price is set at USD 10.98, being GBP 7.00 converted into USD at today's exchange rate.

The Company may increase the USD 300 million issue by up to USD 50 million. Based on an issue size of USD 300 million, the Ordinary Shares to be issued upon conversion of the Bonds would represent approximately 27 million Ordinary Shares or 8.3% of the current total number of issued and outstanding Ordinary Shares of the Company. In addition, the Company will offer CRM the right to an additional 12.5% of the issued amount.

Settlement of the Offering is expected to take place on or about 10 February 2012 (the "Settlement Date"). If not converted or previously redeemed or purchased the Bonds will be redeemed at par at maturity 5 years from the Settlement Date. The Company will have the option to call the Bonds at 110% of par at 36 months after the Settlement Date. In addition, the Company has the right to redeem the Bonds if at any time the aggregate principal amount of the Bonds outstanding is equal to or less than 15% of the aggregate principal amount of the Bonds initially issued.

The Board has approved the acceleration of expansion capital expenditure into H1 2012 in order to benefit from the relative strength in the iron ore market, to ensure timely availability of equipment and to retain the benefits of using the current on-site contractors. This expenditure includes the purchase of additional locomotives, rolling stock and associated rail infrastructure to increase capacity.