Friday, August 28, 2015

West African Minerals announced disposal of Sierra Leone licences

BVI-registered company West African Minerals Corp announced its withdrawal from Sierra Leone licences, in order to save US$50,000 in costs this year. According to the plan, which was initially proposed in February 2015, and is brought into life now, West African Minerals agreed to sell its wholly-owned subsidiary, Ferrous Africa Limited, which held five licences in Sierra Leone, to Sierra Resources Ltd., for US$1. Sierra will be also liable for any outstanding liabilities, including any costs for rehabilitation and wind-up, which had been estimated to cost the BVI company US$50,000 in 2015. Upon completion of the transaction, West African Minerals has no remaining interests in Sierra Leone, and no financial liabilities in respect of these five licences.

According to company’s unaudited financial results for the six months period ended 30 September 2014, the balance sheet including value of Ferrous Africa Limited (FAL) amounted to £4,101,164, and will be written down to zero. In the year 2014, audited loss before tax of the FAL amounted to £321,497.