AMN - LIBERIA: Extra equipment for New Liberty

Avesoro Resources' wholly-owned subsidiary Bea Mountain Mining Corporation (BMMC) has entered into equipment finance facility agreements with Mapa Insaat ve Ticaret AS, a related party, to facilitate the purchase of heavy mining equipment totalling approximately US$6.1 million. The equipment will be used at the New Liberty Gold Project in Liberia.

The purchase follows a recent announcement by Avesoro of an updated mineral resource and mineral reserve estimate for the New Liberty mine and details of a new mine plan, which requires additional equipment.

Once the expanded mining fleet is complete, the company expects to be able to ramp-up to a quarterly gold production rate of 36,000 ounces during 2018.

The company had sought quotes for the equipment from a number of providers, however, due to Mapa’s purchasing power it can secure more competitive terms than can be achieved by the company directly.

Mapa is part of the MNG group of companies owned by the company’s non-executive chairman Mehmet Nazif Gunal, and entering into the finance agreements constitutes a related party transaction for the company.

The agreements relate to two Sandvik 1500i drill rigs, one Komatsu PC1250 excavator and four Komatsu HD785 haul trucks. Delivery to New Liberty is expected to occur in late October.

BMMC expects to enter into further agreements with Mapa, on substantially similar terms to the finance agreements, to facilitate BMMC’s purchase of additional new equipment, including three Komatsu PC1250 excavators and eight Komatsu HD785 haul trucks along with some auxiliary equipment for delivery to New Liberty throughout quarter 4 of 2017 and quarter 1 of 2018.

New Liberty has an estimated proven and probable mineral reserve of 7.4 million tonnes with 717,000 ounces of gold grading 3.03 g/t and an estimated measured and indicated mineral resource of 9.6 million tonnes with 985,000 ounces of gold grading 3.2 g/t and an estimated inferred mineral resource of 6.4 million tonnes with 620,000 ounces of gold grading 3.0 g/t.

New Liberty is within the Southern Block of the Bea Mountain mining licence, which covers 478sqkm and has a 25-year, renewable, mineral development agreement. The mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which host indicated and inferred mineral resources.

The company also owns the Yambesei, Archaen West, Mabong and Mafa West licences in addition to a gold exploration permit in Cameroon.

http://avesoro.com/