CENTRAL AFRICA Big brother Benefactors a breakthrough for Mebaga The significant funding injection Anglo American and Kumba Iron Ore will provide to further the Mebaga iron ore project in Gabon is a massive step forwards for 82% project owner Ferrex. A successfully completed deal of this nature will ensure the project’s true potential is revealed, particularly with regards to optimising its start-up scale and development, Ferrex CEO Dave Reeves tells Laura Cornish. IN SHORT Ferrex’s Mebaga iron ore project in Gabon will make significant exploration strides over the next two years thanks to its new partnership with Anglo American and Kumba Iron Ore. W hen AIM-listed iron ore and manganese junior Ferrex announced in December last year that it had signed a binding term sheet agreement with the two mining majors to fund the exploration and advancement of its Mebaga project, one thing became immediately apparent. We are certain Juniors don’t that no matter have to ‘go how far the it alone’ if drilling goes they secure further afield ‘lucrative’ there is enough tenements. for Ferrex to deliver a small scale operation of about 1 Mtpa. Dave Reeves And this is what Reeves does well. He was projects and mining general manager at Zimplats where he was responsible for the study phases and development of the PGM- rich opencast and underground Ngezi platinum mine in Zimbabwe. Subsequent to that he contributed significantly to African Platinum’s portfolio where he was technical manager. What they said The deal’s transaction term sheet sees Anglo American and Kumba fund the exploration of Mebaga and surrounding areas over a period of up to two years and includes a provision to refund Ferrex for the majority of the exploration spend to date. The term sheet also allows Anglo American and Kumba to move to 100% ownership of the project at its election via a purchase arrangement; or alternatively for Ferrex to maintain 100% ownership of the project if Anglo American and Kumba do not elect to purchase it. Exploration will be managed by Anglo American and Kumba; however they will utilise the existing in-country Ferrex exploration team. The junior was first granted its exploration licence for Mebaga in January 2012 and has been showcasing attractive and highly prospective drilling results ever since. Wide intercepts of direct shipping The Mebaga project has the potential to deliver significant high grade iron ore in the future 18 MINING REVIEW AFRICA ISSUE 3 2014