Prepack deal saves London Mining's Sierra Leone mine
The mineran into "severe liquidity issues" caused by a combination of high costs, falling iron ore prices and the impact of the Ebola virus
LONDON MINING’S troubled Marampa mine in Sierra Leone, has been sold via a prepack deal by PwC’s joint administrators.
The mine – which employs over 1,400 people – ran into “severe liquidity issues” caused by a combination of high costs, falling iron ore prices and the impact of the Ebola virus has now switched hands to Timis Corporation.
All mine staff keep their jobs and be employed by Timis.
Peter Dickens, joint administrator of London Mining and director at PwC, said: “This is a great outcome, not only for the Marampa mine workforce transferred to Timis as part of the deal, but also in terms of protecting a key asset in Sierra Leone’s economy, contributing around 10% of the country’s GDP.
“I am delighted that PwC has been able to bring together management, lenders, advisers, the Sierra Leone government and Timis Corporation, all of whom were committed to completing this critical transaction for the Marampa Mine and its workers, which sees the mine’s long-term future assured.
“Saving the mine at this difficult time for Sierra Leone was a major priority. The Company’s important efforts relating to Ebola treatment will also continue to be maintained.”
Frank Timis, chairman of the Timis Corporation, said the company had “provided working capital financing for $70 (£44m) to Timis Mining Corp (SL) Ltd which will allow the mine to quickly ramp up to profitability”.