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Cape Lambert Resources signs binding agreement for iron ore project

18 April 2012

Cape Lambert Resources has signed a binding heads of agreement (HoA) confirming access to key transport infrastructure related to the development of its 100% owned Marampa Iron Ore Project in Sierra Leone.

The agreement was signed between Cape Lambert and its subsidiaries Marampa Iron Ore and Marampa Iron Ore (collectively CFE Group), and iron ore producer African Minerals and its majority owned subsidiary African Railway and Port Services (ARPS).

The Marampa Project is proposed to be developed in two stages, defined by its access to transport infrastructure.

Initial infrastructure agreement between the parties was signed on 1 October 2008 and a term sheet agreement was reached on 15 July 2010.

In the first stage of the project, ARPS will provide the CFE Group with access to the Pepel Railway for the transportation by rail of up to two tonnes per annum of iron ore concentrate from the Marampa Project to the operating Pepel Port for export.

CFE Group will design and construct a 34km spur line from the Marampa Project to the Pepel Railway for the sole and exclusive use of the CFE Group.

The second stage of development calls for export of 16.5t per annum of Marampa concentrate from the proposed ARPS-owned Tagrin Port development.

The option for the purchase of up to two tonnes per annum of Marampa iron ore concentrate by the African Minerals Group, provides the CFE Group with effective Stage one transport infrastructure capacity of four tonnes per annum.