LONDON (Alliance News) - Sable Mining Africa Ltd shares surged higher early Monday after the company said its West Africa Exploration SA subsidiary has signed an Infrastructure Development Agreement with the Liberian government for the Nimba Iron Ore project in Guinea.
Under the deal, West Africa Exploration and Liberia's government have reached agreement on the development, ownership, rights, financing, use and operation of rail and port infrastructure in Liberia needed to facilitate the export of iron ore from the Nimba project. The iron ore will be transported through Liberia using the rail line already in place in the country linking Yekepa to the Port of Buchanan.
The Liberian government said the deal would involve West Africa Exploration paying a signature fee of USD250,000 upon signing of the agreement. On an annual basis following this, the company will make an annual contribution to a social fund for the country's affected by the deal of no less than USD2.5 million and will pay a variable annual concession to the government of USD1.5 million to USD5 million once transshipments start.
"The signing of this IDA is truly a momentous occasion for Sable Mining and the countries of Guinea and Liberia and is the result of many months of hard work by the Company, its partners, and numerous Government ministers, staff and representatives in both Liberia and Guinea," said Sable Chief Executive Andrew Groves.
Sable shares were up 63% to 3.294 pence on Monday morning, the best performer in the AIM All-Share index.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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