TAWANA RESOURCES NL - Tawana and WISCO CAD signe MoURelease Date: 18/05/2015 08:43:00 Code(s): TAW PDF(s):
Tawana and WISCO CAD signe MoU
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
Share code on the Australian Stock Exchange Limited: TAW
(“the Company” or “Tawana”)
Tawana and WISCO CAD Sign MoU
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO
TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
Tawana Resources NL (the Company) and WISCO CAD (Hong Kong) Mining Company Limited
(WISCO CAD), collectively (the “parties”) announced today that they have signed a non-binding
memorandum of understanding (MoU)1 to negotiate in good faith, a potential cooperation
agreement between the parties in relation to access and use of WISCO CAD’s port facilities in
the port of Freeport, Monrovia.
Under the terms of the MoU, WISCO CAD and Tawana will negotiate with a view to executing a
definitive Cooperation Agreement (“Cooperation Agreement” or “Agreement”) in relation to the
use of the port facilities at Freeport. Under this proposed agreement, both parties will negotiate
the logistics and commercial terms relevant to potentially securing access to the existing working
port facilities and infrastructure operated by WISCO CAD. The Agreement is to be negotiated on
the premise of access to stockpiling and ship loading services during the early stage of Tawana’s
The MoU provides the platform for negotiating a commercially viable end-to-end logistics
solution for the Mofe Creek project during its early stages of development and ramp-up. The
production and export of initial smaller scale tonnages from the Mofe Creek project is designed
to establish the Company within Liberia, while minimising capital expenditure and creating
revenue and employment opportunities within the community.
Tawana’s Executive Chairman and Chief Executive Officer, Mr Wayne Richards said "Tawana is
very pleased to have this opportunity to work closely with WISCO CAD through the MoU. We
believe this MoU could promote mutually beneficial cooperation and export opportunities
between our companies as well as create the opportunity to increase the export capacity and
revenues of the Freeport facilities”.
Mr Richards added “The MoU and proposed Cooperation Agreement has the potential to provide
an interim export facility and logistics solution for the initial stage of the Mofe Creek project
while the Project’s proposed independent haul road and transhipment facility are being
designed and constructed for the incremental production tonnes”.
Mr Richards concluded, “The MoU represents an outstanding opportunity to export the
Company’s premium iron ore product (63-68% Fe) from the Mofe Creek project, with very
limited up-front capital requirements”.
The recent discovery of Direct Shipping Ore on the newly acquired tenement MEL1223/14
(refer ASX release 7 May 2015) also presents a potential opportunity to mine and supply high-
grade feed to an early start-up, low capital intensity Project at a significantly reduced OPEX
cost, due to very simple crushing and screening requirements only (i.e. no beneficiation).
WISCO CAD, through its related entities, has been granted the concession to operate the Bong
Mine in Liberia and has developed, constructed, and operated a bulk handling port facility at
the Monrovia (Freeport) port facility for the past two years. WISCO CAD operates a mine,
railroad and port facility within Liberia.
Tawana, through its related entities, holds a 100% interest in the Mofe Creek iron ore project
in Liberia, located approximately 85km from the capital city of Monrovia. As part of its Scoping
Study2, Tawana considered an early start-up scenario, to gain an early presence on-site and to
produce tonnages at an optimal rate that sustained or supported this proposed interim logistics
and product export solution for the Mofe Creek project.
Tawana would also like to acknowledge the support of Canaccord Genuity -Hong Kong in the
negotiation and translation of the agreement.
As part of the Mineral Development Agreement (currently being negotiated with the
Government of Liberia), Tawana will pursue the option of an early-start-up project for an
envisaged finite operating period while finalising the design, approvals and construction of an
independent haul road and transhipment port in the near vicinity of the deposits.
For further information, contact:
Executive Chairman & CEO
Ph: +61 8 9489 2600
18 May 2015
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
(i) the MOU represents a non binding intention of the parties to negotiate a formal cooperation
agreement in good faith. The parties are yet to agree on any definitive operational, commercial
and/or legal terms (including tonnage capacity or delivery schedules) for the cooperation
(ii) the obligation to negotiate in good faith comes to an end on the earlier of execution of a definitive
cooperation agreement or 31 December 2015; and
(iii) there is no certainty or assurance that parties will reach a final agreement on the terms of the
Full details of the Scoping Study referred to in this announcement were initially released to the ASX in an
announcement dated 3 July 2014, and should be read in conjunction with this announcement. All material
assumptions underpinning the Scoping Study, production targets and forecast financial information derived
from the production targets as well as any cautionary statements and disclosures as required under the ASX
Listing Rules and 2012 JORC Code are set out in the announcement dated 3 July 2014 and continue to apply
and have not materially changed.
Forward Looking Statement
This announcement may contain or refer to previously reported forward looking statements and projections
regarding estimated resources and reserves; planned production and operating costs profiles; planned capital
requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are
estimates only and should not be unduly relied upon. They are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors many of which are beyond the control of Tawana
Resources NL. The forward looking statements/projections are inherently uncertain and may therefore differ
materially from results ultimately achieved.
Tawana Resources NL does not make any representations and provides no warranties concerning the accuracy of the
projections, and disclaims any obligation to update or revise any forward looking statements/projects based on new
information, future events or otherwise except to the extent required by applicable laws. While the information
contained or referred to in this announcement has been prepared in good faith, neither TAW or any of its directors,
officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness,
accuracy, completeness or correctness of the information, opinions and conclusions contained or referred to in this
announcement. Accordingly, to the maximum extent permitted by law, none of TAW, its directors, employees or
agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited,
contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for
any of the opinions contained or referred to in this announcement or for any errors, omissions or misstatements or
for any loss, howsoever arising, from this announcement.
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