Aug 15 Sierra Leone-focused miner African
Minerals named a new chief executive and said it had
obtained $248 million in cash through an agreement with China's
Shandong Iron and Steel Group (Shandong).
Shares in African Minerals have lost about 90 percent of
their value this year due to lower iron ore prices, the ebola
crisis in West Africa and difficulties in raising new funding.
The London-listed company said on Friday it had reached an
agreement with Shandong, its partner on the Tonkolili project in
Sierra Leone, to obtain $284 million that had been earmarked for
the second phase of the project's expansion.
"Both shareholders have agreed to access the funds in the
Hong Kong joint project account ... not only for construction
capital, but also for general working capital purposes, with
immediate effect," African Minerals said in a statement.
In agreeing to allow access to the funds, however, Shandong
requested some changes in management.
African Minerals announced the appointment of Alan Watling
as its new chief executive after the resignation Bernard Pryor.
(Reporting by Silvia Antonioli; editing by Jane Baird)