LONDON MINING RECIEVES NEW LICENCE AND FISCAL INCENTIVES FOR MARAMPA
IRON ORE PROJECT
(Thomson Reuters ONE) - * New mining lease granted of 13.82km2 confirms workable tailings and primary ore resource* Fiscal incentives and commitments package approved by Sierra Leone* Government with parliamentary ratification expected Q4 2009* 54 hole, 6,925m drilling programme underway on primary ore body* JORC statement for enlarged tailings resource by end of 2009* JORC statement for primary ore body by 1H 2010* Construction to be initiated immediately after parliamentary ratification of final mining plan and fiscal incentives, with target first phase 1.5mtpa production within 12-18 months thereafter.London Mining plc ("London Mining") announces today that it hasreceived a new mining lease securing its key tailings and primaryresource at its Marampa Iron Ore Project in Sierra Leone. In additionto the mining lease being granted, the Government of Sierra Leone(GoSL) has provided London Mining with a series of fiscal incentivesthat improve the economics of the project for London Mining, whilstalso providing a substantial, sustainable contribution to GoSLnational income. Ratification of this agreement by the Sierra Leoneparliament is expected to take place during Q4 2009. Permits andpermissions have also been granted to London Mining regarding itsproposed truck, barge and floating crane transhipment logistics. Thesigning of these agreements, along with the recent settlement ofoutstanding boundary issues with African Minerals Limited (asreported on 21 August 2009), resolves a number of outstanding issuesrelating to the Marampa project and provides London Mining with thefull backing of the Government of Sierra Leone (GoSL) to take theproject into production. Once LM has received formal ratificationfrom Parliament of its final mining plan and fiscal incentives,construction will be initiated immediately thereafter with firstproduction anticipated to be within 12-18 months.New Mining LeaseLondon Mining Company Ltd (operating subsidiary of London Mining) hasbeen issued by GOSL with Mining Lease 2/09 covering an area of13.82km2 and incorporating the previously operating Marampa mine.London Mining has proposed and agreed a licence boundary which allowsfor practical development and operation of a tailings re-processingfacility and provides the opportunity to expand operations bydeveloping the primary ore body. The new lease area does not includeextensions to two exploration targets previously drilled by theSierra Leone Development Company (DELCO) but incorporates additionaltailings resources and areas beneficial to the overall phased miningoperation.Fiscal IncentivesThe GoSL has also approved a package of fiscal provisions in relationto the Company's investment and start-up of operations. The mainfeature of the fiscal package relevant to the development stage ofthe project, is a reduction in import and excise duties, includingthat on fuel, lubricants, all capital expenditure and spare parts.These are applicable for the duration of the mining lease and arelegally enforceable with immedate effect. These and all additionalincentives, in relation to withholding tax, corporation tax and otheroperational taxes, are expected to be ratified by parliament duringtheir next session in Q4 of this year.Mine Development PlanPhase 1: 1.5mtpa of fine sinter feed from the reprocessing historicof tailings. Concentrate will be transported 40km by truck to a bargeloading facility then 60 km by barge for transhipment in deep water.Phase 2: Expansion to over 3mtpa of concentrate production frommining and processing of primary ore. The current 6,925m drillingprogramme will result in a JORC standard resource in 1H of 2010.Graeme Hossie, CEO of London Mining plc, stated:"These agreements with the Government of Sierra Leone secure LondonMining's core iron resource lease and logistics at Marampa as well askey financial parameters. We are now in a solid position to movetoward first production from tailings concentration and to determineand advance the full scale of production achievable from the primaryore body. London Mining's technical expertise, financial resourcesand dedicated local management team, combined with the Marampaproject's low capex, location and simple logistics, make ourproduction plans highly deliverable. London Mining's Marampa projectwill greatly benefit the people and economy of Sierra Leone anddeliver substantial value to our shareholders through its near-termcash flow and significant expansion potential. "Rachel Rhodes, Finance Director of London Mining, said:"The new mining lease together with the package of fiscal incentivesagreed with the Sierra Leone government enables the Company to meetits investment requirements to build a profitable and sustainablebusiness in Sierra Leone. This is an exciting project which willallow the Sierra Leone economy to benefit substantially from LondonMining's proposed initial USD60 million investment in the country,through job creation and significant contribution to nationalrevenues. We look forward to parliamentary ratification of our finalmine plan and fiscal package during Q4 of this year, which willenable us to commence development"Marampa OverviewThe previous mine, operated by the Sierra Leone Development Company(DELCO) was in operation from 1933 to 1975 and formed a significantpart of the Sierra Leone economy. The mine was briefly reopened byAustromineral, a subsiduary of Voest-Alpine, in the mid 1980s but buthas not been operated since. The Company plans to construct atailings re-processing plant at Marampa able to produce 1.5Mtpa of66% Fe concentrate within 12 to 18 months from developmentcommencing. The intention is to increase production to 3Mtpa or morethrough expansion of the tailings operation or development of theprimary ore resource. Mining is expected to use conventional truckand shovel methods and/or hydraulic mining for parts of the tailingsresource. Processing will employ two stages of high intensitymagnetic separation.Concentrate will be transported to barge loading facilities atTawfayim on the Port Loko creek for shipment to deep water forloading on to Panamax or Capesize ships. The mine is located 40kmfrom Tawfayim, of which 22km is via existing tarmac road. Theremaining 18km of laterite road has been surveyed and is underconstruction.Please see the full annoucement, including the agreed Marampa Lease,enclosed (or click on the link below). To read more about the Marampaproject, please visit our homepage at:http://www.londonmining.co.uk/sierra-leone.aspxFor more information, please contact:InvestorsLondon Mining PlcGraeme Hossie, Managing Director +44 (0) 20 7201 5000Rachel Rhodes, Financial DirectorThomas Credland, Head of Investor RelationsMediaCrux Kommunikasjon (Norway)Charlotte Knudsen +47 97 56 19 59Threadneedle Communication (UK)Laurence Read +44 (0) 20 76539850About London MiningFounded in April 2005, London Mining is incorporated and registeredin the UK. In 2007, London Mining raised over USD 185 million toadvance iron ore production from its projects, and listed on the OsloAxess, a marketplace regulated by the Oslo Stock Exchange. In 2008,it sold its Brazilian mine to Arcelor Mittal for USD810m and returnedGBP220m to shareholders. The Company currently has iron ore projectsand mines in China, Sierra Leone, Saudi Arabia and Greenland, andcoal assets in South Africa and Colombia. London Mining trades underthe Reuters symbol LOND.OL and Bloomberg symbol LOND:NO.http://hugin.info/137683/R/1341784/321015.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 17.09.2009 - 07:46 Uhr
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IRON ORE PROJECT"
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