Togo – Negotiations for the Mining Convention for the Ferrex Nayega manganese project in northern Togo has been concluded.
Ferrex is AIM-quoted and focused on manganese and iron ore projects in Africa. Nayega is held through its 85% owned subsidiary SGM SARL.
This is a positive outcome for both the Company and the government as the document outlines the significant contribution that Nayega will make to community development, skills transfer and fiscal uplift in return for tax stabilisation and other fiscal incentives.
The next step is the grant of an exploitation permit anticipated by the end of Q2, 2015.
A definitive feasibility study (DFS) for is also nearing completion and its focused on an accelerated start-up model to export 250 000 tpa of manganese ore to generate early cash flow.
Initial numbers indicate significantly less capital and lower operating costs. Ferrex is awaiting final costing inputs prior to anticipated announcement at the end of April 2015.
The company also announced a total JORC Code compliant resource for Togo which has increased to 14 Mt at 12.4% manganese
Discussions with project financiers and manganese off-takers progressing positively and tenders for the process plant and other major items are to be drafted and released to allow winning contractors to be appointed simultaneously with the award of the exploitation permit.
Ferrex MD Dave Reeves says, “We have made some major advances in progressing the Nayega manganese project towards development over the last two months. The recent conclusion of the company’s detailed negotiations with the government’s appointed representative group, Point Focal, is a significant step forward and we are pleased to have achieved a win-win outcome for both parties.”
“The convention, which covers a wide variety of issues including taxes, environmental and community requirements and state participation, details the company’s support of the government’s desire to achieve more from the minerals industry. Togo’s government aims to achieve this through a significant community programme, local skills transfer commitments and government participation whilst supporting the company through tax stabilisation and other fiscal incentives.”