Liberia – Tawana Resources, the ASX/JSE-listed iron ore junior, has signed a non-binding memorandum of understanding (MoU) with Hong Kong-based miner Wisco Cad to negotiate a potential cooperation agreement in relation to the access and use of Wisco Cad’s port facilities in the port of Freeport, Monrovia.
Under the terms of the MoU, Wisco Cad and Tawana will negotiate with a view to executing a definitive cooperation agreement in relation to the use of the port facilities at Freeport.
Under this proposed agreement, the companies will negotiate the logistics and commercial terms relevant to potentially securing access to the existing working port facilities and infrastructure operated by Wisco.
Wisco, through its related entities, has been granted the concession to operate the Bong Mine in Liberia and has developed, constructed, and operated a bulk handling port facility at the Monrovia (Freeport) port facility for the past two years.
The MoU provides the platform for negotiating a commercially viable end-to-end logistics solution for Tawana’s Mofe Creek iron ore project during its early stages of development and ramp-up and is to be negotiated on the premise of access to stockpiling and ship loading services.
The production and export of initial smaller scale tonnages from the Mofe Creek project is designed to establish the Tawana within Liberia, while minimising capital expenditure and creating revenue and employment opportunities within the community.
Tawana executive chairperson and CEO Wayne Richards believes the MoU with Wisco could promote mutually beneficial cooperation and export opportunities between the companies as well as create the opportunity to increase the export capacity and revenues of the Freeport facilities.
Richards added: “The MoU and proposed cooperation agreement has the potential to provide an interim export facility and logistics solution for the initial stage of the Mofe Creek project while the Project’s proposed independent haul road and transhipment facility are being designed and constructed for the incremental production tons”.