News5 Mar 2015 12:55
1251 GMT African Minerals is unlikely to have much legal recourse to take back control of the key units that control its 75% stake in Sierra Leone's Tonkolili mine, says SP Angel. Shandong Iron and Steel Group, a 20% owner of Tonkolili mine, took control of those units by appointing its own directors who have a majority vote. SISG made the appointments after African Minerals failed to comply with a call to repay a $250 million pre-export facility in default since November. SISG requested immediate payment after taking its control from African Minerals' bank lenders last week. SP Angel says pre-export finance facility is secured debt unlike the SISG shareholder loan. "This puts Shandong in a stronger position to take control over the company and its assets."