18/11/2010 The London Stock Exchange welcomes Zanaga Iron Ore Company Ltd to AIM
The Zanaga Iron Ore Company, an iron ore exploration and development company with operations in the Republic of Congo (Congo Brazzaville), was today admitted to trading on AIM. This follows Zanaga’s IPO, which included gross placing proceeds of $100m, giving the Company a market capitalisation of approximately $700m.
Zanaga owns, through its 100% subsidiary Jumelles Ltd, two exclusive exploration licences, each covering 500km², the Zanaga-Madzoumou Exploration Licence and the Zanaga-Bambama Exploration Licence.
Based on drilling work carried out on a 25km stretch of the ore body up to 30 June 2010, a JORC Code compliant resource for the Zanaga Project of approximately 3.34 billion tonnes has been calculated. This resource statement includes results from drilling that has taken place on only 25km of an indicated 47km strike of magnetite mineralisation, as such the Management believes the Zanaga Project offers significant opportunity to further expand the resource base.
The Company is focused on developing the resource base at the Zanaga Project, with annual output targeted to be 45Mtpa of iron ore concentrate once full capacity is reached. Based on metallurgical test work to date, the Company is targeting production of two high quality products, namely: a 65% sinter product and a 67% Fe concentrate product, both with low deleterious elements. The Pre-Feasibility Study is expected to be completed by the end of Q1 2011.
Commenting on the IPO, Clifford Elphick, Non-Executive Chairman, said:
“We are extremely pleased to have successfully listed on AIM with such a high level of interest from the investment community. This marks an important milestone for Zanaga at a critical point in the Company’s development as we look to advance the project through a feasibility study to bankable standards. We now have a strong financial base and an elevated profile from which to move the world class Zanaga Iron Ore Project forward to production.”
Liberum Capital Limited is the Nominated Adviser to the Company.