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Corporate Update - Disposal of Sierra Leone licence interests

21 August 2015

On 27 February 2015 the Board of WAFM announced that it had implemented a new stream-lined budget for the Company for 2015 (the "2015 Budget") to reduce expenditure at the operational and corporate level, including the proposal that the Company relinquish its licences in Sierra Leone thereby reducing costs in Sierra Leone to US$50,000 in the 2015 Budget for rehabilitation and wind-up.

The Company has completed its withdrawal from Sierra Leone, which has been effected by the sale on 19 August 2015 of its entire interest in the share capital of its wholly-owned subsidiary, Ferrous Africa Limited ("FAL"). FAL's subsidiaries ("FAL Group") held the Company's five licence interests in Sierra Leone. As a consequence of the disposal, the buyer (Sierra Resources Limited) will be responsible for any liabilities of the FAL Group from completion, including any costs for rehabilitation and wind-up, which had otherwise been estimated to cost the Company US$50,000 in 2015. In addition, the buyer has paid a nominal consideration of US$1. Following completion, the Company has no further interests in Sierra Leone and no further financial liabilities in respect of the Sierra Leone licences.

As set out in the Company's unaudited interim results for the six months ended 30 September 2014, the balance sheet carrying value of the FAL Group as at that date amounted to £4,101,164 (comprising the carrying costs of the Sierra Leone exploration licences of £2,371,151 and capitalised deferred exploration expenditure of £1,730,013) and which will be written down to zero. As at 30 September 2014, Group total assets (before any provision in respect of the FAL Group) amounted to £27,759,163. In the year ended 31 March 2014, audited loss before tax of the FAL Group amounted to £321,497.

 

For further information contact:

 

West African Minerals Corporation

Anton Mauve

 

+44 (0) 1624 639396

 

Beaumont Cornish Limited (Nominated Adviser)

Roland Cornish

Michael Cornish

 

+44 (0)20 7628 3396

SP Angel Corporate Finance LLP (Broker)

Ewan Leggat/Katy Birkin

 

+44 (0) 20 3470 0500