TSX VENTURE EXCHANGE: WAI
VANCOUVER, May 1, 2014 /CNW/ - West African Iron Ore Corp. (TSX-V: WAI) West African Iron Ore Corp. ("WAI" or the "Company") is pleased to
announce a technical, financial and corporate update.
Update on Technical Report
The Company anticipated releasing its NI43-101 technical report on the
N'Dougou Project, including a Compliant Mineral Resource estimate, in
Q4-2013; however, due to a confidentiality agreement with the
metallurgical testing company, the Company is unable to finalize the
report because of its inability to release the metallurgy section
publicly for the time being. These delays are outside of the Company's
control and the Company will release the technical report when it is in
a position to do so. The report is expected to provide a resource
estimate for three commodities - Iron Ore, Alumina and Silica.
Update on Finances
On May 10, 2013, the Company signed a $2,000,000 unsecured convertible
debenture financing agreement with SKY ALLIANCE RESOURCES, INC.
("SARI"). SARI has agreed to finance up to $2,000,000 by way of up to
four drawdowns of $500,000. Each drawdown will be in the form of a
convertible debenture with a term of 5 years and an 8% annual interest
rate. During the term of the Debentures, SARI will have the option to
convert all or any portion of the outstanding debentures into common
shares of the Company at market price at the time of drawdown, subject
to a minimum conversion price of $0.10 per share.
The first certificate of $500,000 was issued to SARI on February 6,
2014. As well, subsequent to December 2013 year end, SARI has advanced
an additional $265,000 to WAI. SARI confirms its commitment to provide
WAI with the required working capital until the closing of a major
financing with strategic investors or partners.
Ongoing discussions with potential strategic partners
During Q2 2014 the Company will be continuing its discussions with
international funds and major mining companies to close a financing
that would allow the Company to complete the current studies on the
N'Dougou (previously Wondima) and AWA deposits.
The Company is in advanced discussions with a major mining company
regarding potential off-take agreements for the N'Dougou deposit. The
closing of this, or any similar agreements, will be announced upon
completion.
Guy Duport, CEO of West African Iron Ore Corp. commented that, "We knew
two years ago that having an iron ore property on the edge of the
Atlantic Ocean (close to port, transportation and infrastructure) would
not in itself be sufficient to fulfill our goal of creating a
"World-Class Project". Even while a confidentiality agreement has
restricted the finalization of our NI43-101 technical report, we feel
that we have accomplished much in these difficult markets. The road
ahead is still long and raising capital in 2014 will be key to our
success. We are very encouraged by the level of interest we have
received from potential partners and we hope to announce shortly the
completion of a partnership that will fund the long-term development of
WAI and our Forécariah property. I would also like to take this
opportunity to say thank you to our local team in Guinea and to the
Guinean Government for its support of our project. As well, the Board
of Directors and I would like to thank you, our shareholders, for your
loyalty, patience and interest in our project during these challenging
times."
Changes to the Board of Directors
The Company also announces that Philip O'Neill has resigned for personal
reasons as director of the Company on Saturday 26th April 2014. We are grateful for Philip's assistance over the past year
and wish him all the very best in his next venture. The Company does
not anticipate replacing Mr. O'Neil in the immediate future.
About the Company
West African Iron Ore Corporation is dedicated to the sustainable
development of its mineral resources in the Forécariah provinces of the
Republic of Guinea. We nurture a harmonious working relationship with
the local community and the Guinean authorities. We advocate the
minimization of environmental impact and the promotion of economic
opportunity for all our stakeholders.
Jonathan Challis, FIMMM, is a qualified person under National Instrument
43-101, and has reviewed and is responsible for the contents of this
news release.
ON BEHALF OF THE BOARD
Guy Duport
CEO
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties, certain of which are beyond
the control of the Company including, but not limited to, the impact of
general economic conditions, industry conditions, volatility of
commodity prices, risks associated with the uncertainty of exploration
results and estimates and that the resource potential will be achieved
on exploration projects, currency fluctuations, dependence upon
regulatory approvals, the uncertainty of obtaining additional financing
and exploration risk.
Readers should also refer to the specific factors disclosed under the
heading "Risk Factors" in the Company's filings with Canadian
securities regulators. Such information contained herein represents
management's best judgment as of the date hereof based on information
currently available. The Company does not assume any obligation to
update any forward-looking statements, save and except as may be
required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE West African Iron Ore Corp.
