The leading iron ore producer in Sierra Leone and a founder of African Minerals, Frank Timis, is showing his interest in acquiring Marampa Mines due to Ebola dispersion from London Mining.
London Mining is on the front line to make efforts for the prevention of virus spreads in Sierra Leone, while its crumple has raised clouds of terror concerning to international practices to fight against THE NOW RENOWNED dreadful virus.
The founder of African Minerals has decided to make a deal of $20m (£12.5m) with Australia’s Cape Lambert Resources who assist him in acquiring Marampa mine. The representative of Timis has verified the financial nuts and bolts of a deal, issued by the Cape Lambert Resources to the Australian stock exchange (ASC). Timis will receive $8 million for one year and get $12 million on account of $2 per ton of iron ore haul out from the Marampa mine for the 4 years in case of successful deal completion.
Both the mining houses African minerals and London Mining have encountered severe fall of 40% in the prices of iron ore as a result of Ebola virus. The virus has covered the whole Sierra Leone from its curse and an average death counts have been raised to 20 per day in western side.
In order to combat against Ebola epidemic, London mining has taken an initiative constructing 130 bed treatment center near Lunsar, 60 miles east of Freetown, and made a contribution up to £103,000 allocated to Sierra Leonean effort to knock out this disease.
Marampa Mine was previously considered as the major profitable company by having a split of 10% in State’s overall GDP. However, the company came into debt and went to on the verge of collapse due to fall in iron ore prices and Ebola crisis. The total workforce employed by Marampa Mine was 1,300 people and contain sufficient reserves of iron ore that will be extracted for the next 40 years.
It is not obvious that Timis mining will acquire Marampa, which clearly reflects that there must be another deal that the administration is looking for. However, it is quiet apparent that ‘African Minerals’ is considered as the natural payer for the London mining’s belongings, providing imperative infrastructure throughout the region that trimmed down the transportation cost and the same is thus observed for the Marampa Operation as well.
It is appealing when came to know that the privately held company named “Timis” supposedly performing the bidding in view that it can even better observe and analyze the funding stream to compose an offer.