West African Iron Ore Signs Letter of Intent for a $30 Million Finance Facility with China International Fund

West African Iron Ore Corp. (TSXV:WAI) signed a binding Letter of Intent for a CAD$30 million facility between the Company and China International Fund Limited.

CIF has, subject to approval of the TSX Venture Exchange, agreed to finance up to CAD$10 million by way of up to 10 drawdowns of CAD$1,000,000 each progressively based on the capital expenditure requirements of the Company. Each drawdown will be in the form of a convertible debenture (collectively the “Debentures”) with a term of 5 years and an 8% annual interest rate.  During the term of the Debentures, CIF will have the option to convert all or any portion of the outstanding Debentures into common shares of the Company at a conversion price of CAD$0.10 per share (subject to the requirements of the TSX Venture Exchange) to the extent that CIF’s aggregate beneficial ownership of common shares of WAI will not exceed 19.9% of the issued and outstanding common shares of WAI at the time of exercise.  The Debentures will be secured, amongst other things, by a first fixed charge on all the Company’s assets and a corporate guarantee given by its major shareholder, Sky Alliance Resources Inc.  On the Maturity Date, the Company will have the option of repaying the maturing Debentures in cash, or with off-take of iron ore production on the Forécariah Tenement.

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