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  1. America Mineral Fields in agreement with IDC, IFC


    Posted:02/18/2003 12:00:00 PM | © Mineweb 1997-2003




    JOHANNESBURG - America Mineral Fields Inc has agreed heads of terms with the International Finance Corporation (IFC, the World Bank's private sector affiliate) and South Africa's Industrial Development Corporation (IDC).
    A statement said this agreement provides a framework for the participation of these leading international financial institutions in AMZ's core Kolwezi cobalt/copper tailings project in the Democratic Republic of Congo (DRC).

    Under the terms of the Agreement, each of the agencies will have an option to acquire up to 10% of the Kolwezi Project on a farm-in basis. The price of this farm-in will be related to the accumulated expenditures of AMZ and its affiliates up to the time of the exercise of the option. The exercise of these options by the agencies would depend on several factors including the economic parameters and financial structure of the project, as well as the agencies' due diligence and final board approvals.

    Pursuant to the Agreement, the company has granted each of the IFC and the IDC a warrant to purchase up to 2.5% of the common shares of AMZ at a price of C$0.75 per share. The warrants have a term of five years and are exercisable after one year.

    AMZ's Kolwezi Project consists of two dams containing 112.8 million tonnes of oxide tailings, grading 1.49% copper and 0.32% cobalt, as determined by Dr. Isobel Clark of Geostokos Limited. This resource has the potential to host one of the world's largest and lowest cost cobalt producers. At a conceptual annual output of 42,000 tonnes of copper and 7,000 tonnes of cobalt, the project would have an operating life of 38 years. Such a project would generate significant tax and foreign exchange earnings, as well as providing local employment and contributing to the revival of the DRC's copper belt infrastructure.


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