SYDNEY, AUSTRALIA: Equatorial Resources Limited has signed a conditional agreement to acquire the Nimba Alliance Iron Ore Project in Guinea, West Africa.
The acquisition is in line with Equatorial’s strategic focus on large-scale exploration and development of iron ore assets situated within clusters of major iron ore projects.
The purchase is subject to due diligence and comprises 5,000,000 shares in Equatorial upon settlement and another 5,000,000 deferred shares upon the renewal or extension of the Nimba West permit to the Company’s satisfaction.
Africa’s iron ore industry is garnering increased interest from major mining companies and strategic stakeholders in the global steel industry, including China.
The region offers a compelling opportunity for significant future iron ore supply due to the potential for low operating costs and vast, high-grade discoveries of high-quality iron ore.
In Guinea, Rio Tinto, Chinese steel giant Baowu, and the Guinean Government have agreed to invest heavily in the Simandou Project, which will deliver shared infrastructure worth around US$15 billion and is expected to be completed by December 2024. The infrastructure will enable commercial production from mines in the region by 2025.
The recent Mining Convention signed between FMG and the Gabonese Republic over the Belinga Iron Ore Project, located in Gabon, has demonstrated the significant investment appetite and potential for Australian companies willing to advance high-quality iron ore projects in Central and West Africa. Equatorial believes that Central and West Africa, and particularly Guinea, are the new frontiers for iron ore development.
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