TSX VENTURE EXCHANGE: WAI
VANCOUVER,
May 1, 2014 /CNW/ - West African
Iron Ore Corp. (TSX-V: WAI) West African Iron Ore Corp. ("WAI"
or the "Company") is pleased to announce a technical, financial and
corporate update.
Update on Technical Report
The Company anticipated releasing its NI43-101
technical report on the N'Dougou Project, including a Compliant
Mineral Resource estimate, in Q4-2013; however, due to a
confidentiality agreement with the metallurgical testing company,
the Company is unable to finalize the report because of its
inability to release the metallurgy section publicly for the time
being. These delays are outside of the Company's control and the
Company will release the technical report when it is in a position
to do so. The report is expected to provide a resource estimate for
three commodities - Iron Ore, Alumina and Silica.
Update on Finances
On May 10, 2013,
the Company signed a $2,000,000
unsecured convertible debenture financing agreement with SKY
ALLIANCE RESOURCES, INC. ("SARI"). SARI has agreed to finance up to
$2,000,000 by way of up to four
drawdowns of $500,000. Each
drawdown will be in the form of a convertible debenture with a term
of 5 years and an 8% annual interest rate. During the term of the
Debentures, SARI will have the option to convert all or any portion
of the outstanding debentures into common shares of the Company at
market price at the time of drawdown, subject to a minimum
conversion price of $0.10 per
share.
The first certificate of $500,000 was issued to SARI on February 6, 2014. As well, subsequent to
December 2013 year end, SARI has
advanced an additional $265,000 to
WAI. SARI confirms its commitment to provide WAI with the required
working capital until the closing of a major financing with
strategic investors or partners.
Ongoing discussions with potential
strategic partners
During Q2 2014 the Company will be continuing
its discussions with international funds and major mining companies
to close a financing that would allow the Company to complete the
current studies on the N'Dougou (previously Wondima) and AWA
deposits.
The Company is in advanced discussions with a
major mining company regarding potential off-take agreements for
the N'Dougou deposit. The closing of this, or any similar
agreements, will be announced upon completion.
Guy Duport, CEO
of West African Iron Ore Corp. commented that, "We knew two years
ago that having an iron ore property on the edge of the Atlantic
Ocean (close to port, transportation and infrastructure) would not
in itself be sufficient to fulfill our goal of creating a
"World-Class Project". Even while a confidentiality agreement has
restricted the finalization of our NI43-101 technical report, we
feel that we have accomplished much in these difficult markets. The
road ahead is still long and raising capital in 2014 will be key to
our success. We are very encouraged by the level of interest we
have received from potential partners and we hope to announce
shortly the completion of a partnership that will fund the
long-term development of WAI and our Forécariah property. I would
also like to take this opportunity to say thank you to our local
team in Guinea and to the Guinean
Government for its support of our project. As well, the Board of
Directors and I would like to thank you, our shareholders, for your
loyalty, patience and interest in our project during these
challenging times."
Changes to the Board of
Directors
The Company also announces that Philip O'Neill has resigned for personal reasons
as director of the Company on Saturday 26th April 2014. We are grateful for Philip's
assistance over the past year and wish him all the very best in his
next venture. The Company does not anticipate replacing Mr. O'Neil
in the immediate future.
About the Company
West African Iron Ore Corporation is dedicated
to the sustainable development of its mineral resources in the
Forécariah provinces of the Republic of Guinea. We nurture a harmonious working
relationship with the local community and the Guinean authorities.
We advocate the minimization of environmental impact and the
promotion of economic opportunity for all our stakeholders.
Jonathan Challis,
FIMMM, is a qualified person under National Instrument 43-101, and
has reviewed and is responsible for the contents of this news
release.
ON BEHALF OF THE BOARD
Guy Duport
CEO
Statements in this release that are
forward-looking statements are subject to various risks and
uncertainties, certain of which are beyond the control of the
Company including, but not limited to, the impact of general
economic conditions, industry conditions, volatility of commodity
prices, risks associated with the uncertainty of exploration
results and estimates and that the resource potential will be
achieved on exploration projects, currency fluctuations, dependence
upon regulatory approvals, the uncertainty of obtaining additional
financing and exploration risk.
Readers should also refer to the specific
factors disclosed under the heading "Risk Factors" in the Company's
filings with Canadian securities regulators. Such information
contained herein represents management's best judgment as of the
date hereof based on information currently available. The Company
does not assume any obligation to update any forward-looking
statements, save and except as may be required by applicable
securities laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE West African Iron Ore Corp.