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London Mining Plc London Mining is pleased to announce that it has given go-ahead for the El Artillero project in Mexico to start production and export of iron ore concentrates. London Mining will commit up to USD7 million in debt finance for the project, and has also increased its interest in Anglo Mexican Mining Ltd, the 98 percent owner of the project, from 49 to 53 percent.
London Mining acquired a 49 percent holding in BVI registered Anglo Mexican Mining Ltd in August 2007 by agreeing to fund a drilling programme and to acquire the rights from Minera del Norte SA de CV. This holding has now increased to 53% after 2% each was acquired from two shareholders of Anglo Mexican Mining for up to USD400,000 in total (depending on the milestones achieved).
A 3.3mt resource averaging 49.2% Fe has already been estimated, which includes a smaller but higher grade resource (2.1mt averaging 59.1% Fe) that will be exploited once the Federal Mexican Environmental Protection Authorities (SERMANAT) mine approvals have been granted. The ore will be upgraded with magnetic separation and is expected to produce about 75,000t/month of concentrates grading 63.7% Fe. Production is forecast to commence within the next nine months, depending on when the SERMANAT approvals are granted. Mining will be contracted out.
London Mining will hold marketing rights to 100 percent of the iron ore concentrates produced and will receive a 5 percent marketing fee on sales.
The El Artillero mine is located 60km by paved road east of the port city Manzanillo (on the Pacific Coast), 5km northeast of the township of Minatitlán, and 12km northeast of the operating Pena Colorado iron ore mine, in Colima State, Mexico. Local trucking contractors will be employed to transport the concentrates from the mine site to the port, which is government owned, and already exports iron ore and pellets produced by the Pena Colorada mine.
Christopher Brown, Managing Director of London Mining said "We are extremely pleased to advance our second mine into production now that we have completed our sinter fines concentration plant in Brazil. This is a small project, but it provides London Mining with additional cash flows, and forms a good base from which to seek other projects in Mexico. We look forward to announcing further news from Mexico, Saudi Arabia, Greenland, Brazil and Sierra Leone during the course of the year as we bring more projects into production and development."
For further information, please contact:
Crux Kommunikasjon AS Charlotte Knudsen +47 97 56 19 59
London Mining Plc Christopher Brown, Managing Director, +44 (0) 20 7495 6210 Graeme Hossie, Corporate Development & Deputy Managing Director, +44 (0) 20 7495 6210
Notes to the Editors:
London Mining is incorporated and registered in the UK, and is developing mines to supply the global steel industry. The Company has operational mining, exploration and development projects located in Brazil, Sierra Leone, Saudi Arabia, Greenland and Mexico, and has total iron ore resources of 1.9 billion tonnes containing an estimated 714Mt of iron. In 2007, London Mining raised over US$185m to advance iron ore production from its projects, and listed on the Oslo Axess, a marketplace regulated by the Oslo Stock Exchange on 9 October 2007. London Mining is trading under the Reuters symbol LOND.OL and Blomberg symbol LOND:NO.
Please also visit our website www.londonmining.co.uk for more information about London Mining and its operations.
