West African Iron Ore Announces Renewal of its Forécariah Licenses
and Financing Update
TSX VENTURE EXCHANGE: WAI
VANCOUVER,
Nov. 13, 2012 /CNW/ - West African
Iron Ore Corp. (TSX-V: WAI) West African Iron Ore Corp. ("WAI" or
the "Company") is pleased to report that the Minister of Mines and
Geology of the Republic of Guinea
granted the Company, on November 8,
2012 its first renewal for its Forécariah permits, under
Decree number: A 2012/10253/MMG/SGG, valid for a period of 24
months.
(Copy of the Decree at
www.westafricanironore.com/pdfs/renewal.pdf).
Update on Financing:
The renewal of these Forecariah permits
satisfies the permitting requirements of the binding Letter of
Intent (the "LOI") for a CAD$30
million loan facility between the Company and Strategic
Partner, China International Fund
Limited ("CIF"), as previously announced in the Company's news
release of September 4, 2012
(WAI-NR12-05).
Any debentures issued pursuant to the LOI will
now be converted into common shares of the Company at the greater
of the market price of the Company's shares at the time of issuance
of the Debentures or the conversion price of CAD$0.10 per share. CIF's aggregate beneficial
ownership of common shares of the Company may not exceed 19.9% of
the issued and outstanding common shares of the Company at the time
of exercise.
CIF has already advanced the Company
CAD$2 million in accordance with the
terms of the LOI. These advances have allowed the Company to pursue
ground activities, pending the signing of the definitive agreements
between the Company and CIF contemplated in the LOI.
"The signing of this decree moves us closer
to our goal to become one of the first producers of iron ore in
Guinea and create substantial
value for both our shareholders and the people of Guinea. With completion of the permitting
required by our LOI, we move closer to executing the definitive
agreement, completing our maiden 43-101 resource report, and having
full access to the C$30 million loan
facility. This financing was structured to limit share dilution and
provide sufficient funding for the Company's growth over the coming
two to three years.
The board and management of the Company wish
to extend their sincere appreciation to the Republic of
Guinea and, in particular, to the
Minister of Mines and Geology, His Excellency Mr. Lamine Fofana, for his diligence and continuous
support of the development of Guinea's mining sector. The mining sector has
substantially benefitted from his vision and foresight into the
daily challenges junior companies face in this highly competitive
and changing market place" commented Guy Duport, CEO of West African Iron Ore
Corp.
Forécariah Licenses Renewed:
The three renewed exploration licenses held by
WAI's wholly owned subsidiary Sky Alliance Ressources Guinée S.A.
("SARG"), cover an area of 1,050 km² in the province of Forécariah.
SARG has a management office in Conakry, the capital city of the Republic of
Guinea, maintains and manages
ground operations on the property from exploration bases in the
city of Forécariah and a base camp near the village of Bokaria.
The Forécariah licenses are strategically
located 35km from the proposed deep-sea ports of Kabak and Matakan.
Rail lines access will lie within the boundaries of our licenses.
See map of Proposed Infrastructures locations, courtesy of the
"Centre de Promotion et de Developpement Miniers" ("CPDM")
at link near the end of this release.
For a larger view please click on this link:
www.westafricanironore.com/pdfs/TIM.pdf
Update on Maiden NI43-101:
The recent drilling program from the Wondima
target will form the basis of the Company's maiden NI43-101
resource report, anticipated to be completed by year's end. The
Company intends to release its NI43-101 report once comprehensive
metallurgical test has been completed. Other potentially
exploitable minerals have been discovered on the properties and the
Company is currently assessing the potential for these minerals to
be incorporated into a resource report. SRK Consulting (UK) Limited
has completed a full QA/QC analysis of the drilling and assays
database, as well as, a site visit to the Wondima target in early
September.
About China International Fund Limited:
CIF is headquartered in the Hong Kong Special
Administrative Region of China,
and has investment footprints in three continents.
With the strength of its experience in
large-scale infrastructure development in Africa, CIF is in a position to accelerate the
iron ore exploration and production goals of WAI, having recently
built road access within the boundaries of the Company's Forécariah
permits to provide access to the barging port of Konta.
CIF has a vision for Africa: Through South-South cooperation and in
partnership with private industry and the government, CIF will
develop public transport infrastructure such as road, rail,
seaports and airports to improve connectivity and accessibility, as
well as public utilities, agriculture, aqua culture, public
housing, construction materials and mining projects, where its
commercial objectives are aligned with the needs of countries to
develop the economy and improve, ultimately, the living standards
of the people.
ON BEHALF OF THE BOARD
Guy Duport
CEO
About the Company:
West African Iron Ore Corporation is dedicated
to the sustainable development of its mineral resources in the
Forécariah provinces of the Republic of Guinea. We nurture a harmonious working
relationship with the local community and the Guinean authorities.
We advocate the minimization of environmental impact and the
promotion of economic opportunity for all our stakeholders.
Our phased exploration program aims to establish
the existence of minable iron ore mineral reserves in sufficient
quantities to permit viable production of iron concentrate and
other mineral deposits.
Jonathan Challis,
FIMMM, is a qualified person under National Instrument 43-101, and
has reviewed and is responsible for the contents of this news
release.
Statements in this release that are
forward-looking statements are subject to various risks and
uncertainties, certain of which are beyond the control of the
Company including, but not limited to, the impact of general
economic conditions, industry conditions, volatility of commodity
prices, risks associated with the uncertainty of exploration
results and estimates and that the resource potential will be
achieved on exploration projects, currency fluctuations, dependence
upon regulatory approvals, the uncertainty of obtaining additional
financing and exploration risk.
Readers should also refer to the specific
factors disclosed under the heading "Risk Factors" in the Company's
filings with Canadian securities regulators. Such information
contained herein represents management's best judgment as of the
date hereof based on information currently available. The Company
does not assume any obligation to update any forward-looking
statements, save and except as may be required by applicable
securities laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE West African Iron Ore Corp.
Image with caption: "Proposed Infrastructures locations,
courtesy of the "Centre de Promotion et de Developpement Miniers"
("CPDM") (CNW Group/West African Iron Ore Corp.)". Image available
at:
http://photos.newswire.ca/images/download/20121113_C7324_PHOTO_EN_20533.jpg