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West African Iron Ore Corp. (TSXV:WAI) provided a technical, financial and corporate update. Highlights include: a delay on the anticipated NI43-101 technical report on the N’Dougou Project, a convertible debenture financing agreement with Sky Alliance Resources, and Philip O’Neal resigning from the Board of Directors.
As quoted in the press release:
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.
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.
West African Iron Ore Corp. CEO, Guy Duport, said:
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.
Click here to read the West African Iron Ore Corp. (TSXV:WAI) press release
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