It is reported that Equatorial Coal has acquired the highly prospective and potentially large scale iron ore projects of Mayoko Moussondji and Badondo, located in the Republic of Congo in Central West Africa, and lifted the suspension of trading in its securities. Equatorial acquired the projects through its acquisition of 100% of Congo Mining Limited, a private company incorporated in the ROC.
Funding of the acquisition will include the payment of USD 3.2 million and, subject to shareholder approval, the issue of 4.2 million ordinary shares.
Further ordinary shares are to be issued when Equatorial reaches a market capitalization of AUD 25 million and a 100 million tonne JORC mineral resource is achieved on the projects.
Equatorial also intends, subject to shareholder approval, to undertake a placement of 8 million ordinary shares each at an issue price of USD 0.25 to raise USD 2.0 million to fund initial working capital on the projects.
The Mayoko to Pointe Noire bulk haulage rail line crosses through the MMIP and runs to the established deep water port of Pointe Noire.
The BIP is also prospective for hematite and magnetite rich itabirite hosted iron ore mineralization with exploration previously undertaken by BRGM having already identified an approximately 7 kilometers long ridge, outcropping up to over 400 meters high above the plain that is known to host iron mineralization.
Both Projects are located in a potential next generation iron ore province that hosts numerous large projects.
DMC Mining, the 80% owners of the Mayoko Lekoumou tenement that is immediately adjacent to the MMIP has an exploration target of 0.9 to 1 billion tonnes of itabirite mineralization and are currently under takeover offers by competing parties
Xstrata plc recently entered into an agreement regarding the Zanaga iron ore project to fund USD 50 million towards ongoing exploration and a pre feasibility study in return for an option to acquire a 50% interest in the project.
Sundance Resources Limited recently commenced drilling at its Nabeba iron ore project in the ROC. The Nabeba project currently has an exploration target of 100 to 250 million tonnes @ 55% to 65% Fe.
Core Mining Limited, owners of the Avima project, have recently announced a funding injection of USD 15 million by Severstal, Russia’s largest steel producer to purchase 16.5% of the company.
MagIndustries Corporation has recently commenced construction of a USD 723 million, 600,000 tonnes per year potash project near Pointe Noire.
Major multinationals have been operating in the ROC uninterrupted for approximately 30 years.
(Sourced from www.proactiveinvestors.com.au)
