TerraCom signs MoU for Guinea iron ore project

TerraCom (ASX:TER) Ltd’s wholly-owned subsidiary has executed an exclusive non-binding Memorandum of Understanding (MOU) to acquire the Kalia Mine Project, Faranah Prefecture in the Republic of Guinea. The proposed acquisition further cements its business diversification strategy to become a global bulk commodities producer. According to the company, the MOU is subject to customary conditions precedents, including but not limited to due diligence to the satisfaction of the company and regulatory approvals. The initial focus of the company is to restart production from the project as expediently as possible, targeting domestic users of iron ore (local rebar producers). “Cements business diversification strategy” TerraCom executive chairman Craig Ransley said: “Whilst we are in the early days of the due diligence process, the company is excited to be working towards an acquisition within one of the world's leading countries, in terms of iron ore and bauxite resources available for exploitation. “The company looks forward to working with all stakeholders on accelerating the satisfaction of the conditions precedent under the MOU and then working to recommence operations as soon as possible. “This opportunity further cements the company’s business diversification strategy to become a global bulk commodities producer.” Kalia project The Kalia Mine Project is located in one of the world’s leading countries in terms of undeveloped iron ore and bauxite resources. It comprises an orebody targeting : ➢ 4.7 billion tonnes of magnetite banded iron formation; ➢ 900 million tonnes oxide and supergene banded iron formation targeting ferronickel; and ➢ A 20-kilometre long magnetite strike, demonstrating the development resource potential of up to 8 billion tonnes of magnetite banded iron formation. The project is just 300 kilometres from the Konta Port, which provides the flexibility to consider both road and rail options as part of its supply chain route to the export market. The timely restart of production activities will provide all stakeholders, particularly the local employees and communities, with an immediate economic contribution. Growth strategy TerraCom is an emerging company, starting off as a resource explorer with a large portfolio of operating assets in Australia and South Africa. The company is currently embarking on a growth strategy to deliver a mid-tier diversified operating and trading business, with a global focus on the development of a high-yielding diversified asset portfolio.