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London Mining Plc (OSL:LOND) London Mining is pleased to announce that it has signed a letter of intent with Wits Basin Precious Minerals, Inc. ("Wits Basin") which may result in London Mining becoming a 50/50 joint venture partner for Wits Basin's iron ore project in Ma Anshan in the People's Republic of China. The potential transaction remains subject to due diligence and finalisation of definitive legal documents.
Under the preliminary terms that have been agreed with Wits Basin, London Mining would acquire a 50% interest in the proposed joint venture vehicle for a total consideration of US$45 million. The joint venture vehicle currently holds rights to acquire three Chinese mining companies, Nanjing Sudan Minerals, Maanshan Zhaoyuan Mining and Xiaonanshan Mining.
London Mining has also agreed to provide up to US$1 million, in the form of a convertible loan note to be issued by Wits Basin, to cover due diligence and other transaction costs associated with the potential acquisitions.
A further announcement will be made in due course.
For further information, please contact:
London Mining Plc Christopher Brown, Managing Director +44 (0)20 7201 5000 Graeme Hossie, Corporate Development & Deputy +44 (0)20 7201 5000 Managing Director
Crux Kommunikasjon AS Charlotte Knudsen +47 97 56 19 59
London Mining 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 Sierra Leone, Saudi Arabia, Greenland, Mexico and South Africa, and has total iron ore resources of 1.3 billion tonnes containing an estimated 459 million tonnes of iron. In 2007, London Mining raised over US$185 million 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. In August 2008 London Mining sold its Brazilan operation to Arcelor Mittal for US$810 million and announced a return to shareholders of US$427 million with the balance of funds received allocated to existing and new projects. London Mining is trading under the Reuters symbol LOND.OL and Bloomberg symbol LOND:NO.
Please also visit our website www.londonmining.co.uk for more information about London Mining and its operations.
Wits Basin Wits Basin is a minerals exploration and development company holding interests in three exploration projects and currently does not claim to have any mineral reserves on any project. Its common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (OTCBB:WITM) visit Wits Basin's website at www.witsbasin.com.
