Charter Pacific raises cash for Mauritanian project
PERTH (miningweekly.com) – ASX-listed mining investment company Charter Pacific Corporation has secured a $3-million loan for the Legleitat iron-ore project, in Mauritania.
The funding was provided by the company’s in-country partner, and shareholder in Charter Pacific subsidiary Legleitat Iron Mauritanie SA, WAFA Mining & Petroleum.
As part of the loan agreement, WAFA would receive an additional 10% equity in Legleitat, increasing its equity position to 20%, while the Mauritania government remained a 20% shareholder and Charter Pacific held 60% of the company.
The $3-million capital injection would provide the first round of funding to acquire hematite deposit 2183.
Charter Pacific executive chairperson Kevin Dart said the finalisation of the first-round payment placed Charter Pacific in a strong position to accelerate potential partnering discussions with several substantial international companies that were currently evaluating Legleitat.
“These parties have expressed interest given the low cost of production, existing infrastructure and the other benefits of the Legleitat project,” Dart said.
The Legleitat project currently has an estimated resource of some 12.2-million tonnes, grading 59% iron, and preliminary assessment has indicated the project’s potential to support a one-million-tonne-a-year operation, with a mine life of around ten years.
Based upon due diligence material received from the Mauritanian Mines Department, Charter Pacific’s in-house preliminary estimates indicate a capital expenditure of up to $22-million could be required to start mining operations on the Legleitat deposit.
Some $45-million has already been spent on the hematite project, by the previous operator.
“We have a strong commitment to this and our other mining projects in Mauritania and are encouraged by the government’s support of resource companies and investors to drive the success of the sector,” said Dart.
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