TerraCom Limited (ASX: TER) (TerraCom or Company) is pleased to announce that its wholly owned subsidiary has executed an exclusive Non-Binding Memorandum of Understanding (MOU) for the acquisition of the Kalia Mine Project in the Republic of Guinea1 (Kalia or Project).
The MOU is subject to customary conditions precedents, including but not limited to due diligence to the satisfaction of the Company and regulatory approvals.
Kalia is located in the Faranah Prefecture, Republic of Guinea, one of the world’s leading countries in terms of undeveloped iron ore and bauxite resources.
The Project comprises an ore body targeting2:
– 4.7 billion tonnes of magnetite banded iron formation;
– 900 million tonnes oxide and supergene banded iron formation targeting ferronickel; and
– a 20 kilometre long magnetite strike, demonstrating the development resource potential of up to 8 billion tonnes of magnetite banded iron formation.
Being approximately 300 kilometres from the Konta Port, Kalia is located in a unique position. This proximity to the port provides the Project with the flexibility to consider both road and rail options as part of its supply chain route to the export market.
Whilst the Company’s focus initially will be to recommence production as expediently as possible, targeting domestic users of iron ore (local rebar producers), it will also, in parallel, assess the most economic means to increase production to meet the growing global demand.
Timely recommencement of production activities will provide all stakeholders, particularly the local employees and communities, with an immediate economic contribution.
TerraCom Executive Chairman Craig Ransley commented:
“Whilst we are in the early days of the due diligence process, the Company is excited to be working towards an acquisition within one of the world’s leading countries, in terms of iron ore and bauxite resources available for exploitation.
The Company looks forward to working with all stakeholders on accelerating the satisfaction of the conditions precedent under the MOU, and then working to recommence operations as soon as possible.
This opportunity further cements the Company’s business diversification strategy to become a global bulk commodities producer.”
