Link Bloomberg reported 2 days ago:
Exxaro Resources Ltd. agreed to buy African Iron Ltd. for about A$338 million ($349 million) Exxaro will pay as much as 57 cents a share and 37 cents an option for Perth-based African Iron, they said today in a joint statement.Having a quick squint at African Iron Ltd's website:
The Mayoko Project is located in the politically stable Republic of Congo and is directly connected to the Atlantic sea port of Pointe Noire by an operational railway.The Mayoko Project has an existing DSO Inferred Mineral Resource of 33Mt at 56% Fe and six targets with an exploration target size totalling 0.9-1.3Bt1 of hematite and magnetite.Recent diamond drilling has confirmed potential extensions to the DSO Resource at Mt Lekoumou and demonstrated enriched banded iron formation ('BIF') over a 7km strike as potential “beneficiable” DSO ('bDSO') to extend DSO mine life and/or increase the production rate.The objective is to commence initial DSO production by mid 2013, ramping up to a steady state 5Mtpa.
Mt Lekoumou has an Inferred Mineral Resource of 33Mt at 56% Fe (with a 50% Fe cut-off) prepared in 2008 based on 36 shallow diamond drill holes completed by ICES-Geomin in 1974-75.
18 diamond drill holes (3,687m) completed between Jan-Aug 2010. This diamond drilling confirmed the 2008 resource and demonstrated resource upside. The drilling also showed weathered enriched hematite and underlying fresh magnetite BIF in lenses 50-200m thick over a strike length of 7km.