London, England — MININGREVIEW.COM — 26 May 2008 – Mano River Resources Inc. – an exploration company focussed on gold, diamonds and iron ore in west Africa – has signed agreements with a wholly-owned subsidiary of leading Russian steel and natural resources company Severstal which will help finance the giant Putu Range iron ore project in Liberia.
At this early stage before the pre-feasibility and feasibility studies have been completed, it is estimated that the project cost will fall somewhere in the range of at least US$500 million (R3.8 billion) to US$1 billion (R7.6 billion). Production at this stage is also difficult to estimate, but could be of the order of 10Mtpa
Mano is targeting a potential resource of 900 million tonnes with an aggressive ongoing 4 000m drill programme to further delineate the resource, and to further establish the quantity and quality of the resource.
The statement points out that funds raised through the share purchase and subscription agreement with Severstal would be invested solely into Liberia. The inhabitants in the county of Grand Gedeh (where Putu is located), as well as neighbouring counties, are expected to benefit significantly as investment into the project increases, creating substantial employment opportunities and boosting the local economy.
It is expected that in excess of US$1bn R7.6 billion) will be invested into surrounding infrastructure and mine construction, which will provide large economic benefits to Liberia.
Mano CEO Luis da Silva commented: “We are delighted to have entered into this agreement with Severstal. Mano’s expertise in West Africa – coupled with Severstal’s expertise in developing iron ore deposits – will be critical in bringing the Putu Range project to production. We see this as a very positive partnership and a significant step forward for Mano as the company looks to enter the next phase of growth. We believe that this deal will be the catalyst for economic and social development in eastern Liberia.”