DGAP-News: Anglo-African Minerals plc: Toubal Bauxite, Rep. of Guinea

DGAP-News: Anglo-African Minerals plc / Key word(s): Corporate
Action/Miscellaneous
Anglo-African Minerals plc: Toubal Bauxite, Rep. of Guinea

20.05.2011 / 18:42

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Company: Anglo-African Minerals plc
Symbol: FSE: AMQ,
ISIN: IE00B66ML191
WKN A0N9YH

Release Date: 20 May 2011
Anglo-African Minerals Plc – Toubal Bauxite
The Directors of Anglo-African Minerals plc (FSE: AMQ) the special
situations mining investment company are pleased to announce a number of
developments since the Company acquired its 62% interest in Toubal Group
Limited (Toubal), which owns all of the issued shares of TouguéBauxite and
Aluminium Corporation S A (TBAL), a Guinean company.
TBAL owns a bauxite exploration licence covering 1,500 km2 close to the
town of Tougué. Previous Alusuisse exploration and recent work indicated
potential reserves of up to one billion tonnes of high quality bauxite.
Al2O3 content ranges from 41-47% with silica content being between 1% and
4%.
Under the terms of the Toubal shareholder–s agreement, the Company has to
spend US$2m (EUR1.4m) on developing TBAL. To that end the Company has
raised secured debt finance of up to EUR1.25 million which has been largely
drawn to finance confirmatory drilling and test work on the TBAL licence
with a view to upgrading the historic resource data to acceptable western
standards (e.g. JORC). Security over a proportion of the Company–s Toubal
shares has been provided to the lenders. These borrowings will be either
repaid upon the listing of Toubal or converted into ordinary Company shares
at the lenders– option.
In parallel to upgrading TBAL–s resource through the Company–s expenditure,
Toubal, together with the Company, is actively looking at funding options
to complete a full feasibility study for the development of the mine and
processing plant. One such option includes the IPO of Toubal and the
directors are well advanced in their discussions with the appropriate
professional advisers.
Mr Michael Smith, Chairman, said –I am delighted with the encouraging
progress being made on the ground in Guinea.–

Contact:
Mr Michael Smith – Chairman of Anglo-African Minerals plc Tel: +44 20
73185383

End of Corporate News

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