African Minerals in talks with ENRC over funding
AFRICAN MINERALS, the London-listed miner, said yesterday it was in talks with several large Asian industrial firms, including Kazahk miner ENRC, over a possible takeover or funding for its Tonkolili iron ore mine.
Shares in the group, led by chairman Frank Timis, hit a record high of 389.75p yesterday, valuing the group at $1.37bn (£830.7m). The shares have risen 17-fold this year.
Timis holds 20 per cent of the group’s shares, and also founded Regal Petroleum.
“The discussions that we have had up until recently have been around ENRC taking a position,” African Minerals chief executive Alan Watling said.
ENRC could buy up to 29.9 per cent of African Minerals before being forced to make a full takeover under Aim rules.
The company has also attracted interest elsewhere and is keen to find investors to help fund its flagship $2.7bn Tonkolili iron ore project in Sierra Leone, which it bills as the world’s third-largest magnetite iron ore resource.