African Minerals Ltd Litigation Outcome and Annual Report posting delay (7954K)

TIDMAMI

RNS Number : 7954K

African Minerals Ltd

27 June 2014

African Minerals Limited

("African Minerals", "AML", or "the Company")

Notification of Outcome of Litigation and delay of posting of Annual Report

African Minerals Limited is a mineral exploration, development and mining company, and is the developer and operator of the Tonkolili iron ore mine in Sierra Leone. The Company today provides an update regarding the outcome of litigation.

Summary

-- Renaissance Capital had filed a claim against the Group for financial adviser's fees amounting to approximately $133m plus interest and costs in relation to fund raisings and transactions in prior years. The case was heard by the Commercial Court in London in March and April 2014.

-- Judgement was issued today in favour of the claimant on certain aspects of the claim, amounting to $35m plus interest and costs.

-- AML had strongly contested the claim, and had provided $6m as a potential award in its final accounts for 2012 and its unaudited preliminary full year results announcement for 2013.

-- The Company has been granted leave to appeal and it is the Directors' view (based on legal advice) that there are reasonable prospects of success on appeal.

-- In the knowledge that the judgement was being made at this time, AML deferred the signing of its annual audited accounts in order to reflect this outcome. As a result, the Annual Report and Accounts are expected to be published on the Company's website on Monday 30th June, and will be printed and posted immediately thereafter. A further announcement will be made at that time.

While the Company is disappointed in the outcome of the judgement, the Board is confident that the appeal has a good prospect of success.

Contacts:

African Minerals Limited

+44 20 3435 7600

Mike Jones

Tavistock Communications

+44 20 7920 3150

John West / Jos Simson / Nuala Gallagher

Jefferies

+44 20 7029 8000

Nick Adams / Alex Collins

About African Minerals

African Minerals operates the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, with a JORC compliant resource of 12.8Bnt. The Project, which currently has a 60+ year mine-life, is being developed in a number of staged expansions. In 2013, African Minerals completed sales of 12.1Mt to its customers. The current year sales guidance is for 16-18Mt of exports as the operations focus on operating at the 20Mtpa run rate design capacity.

Phase II expansion will see exports increase to 25Mtpa, and will incorporate production of a high grade concentrate product. Concentrate production will begin in 2015 and will eventually displace current DSO production as concentrate volumes increase and the DSO resource depletes over time.

The Company has also developed significant port and rail infrastructure to support the operation of the Project, via its subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in which the Government of Sierra Leone ("GoSL") has a 10% free carried interest.

The Project companies are currently owned 75% by AML, and 25% by Shandong Iron and Steel Group ("SISG"), except for ARPS, which is currently owned 75% by AML and 25% by SISG, with the GoSL having the right to a 10% free carried interest from AML.

www.african-minerals.com

This information is provided by RNS

The company news service from the London Stock Exchange

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