Audited Consolidated Financial Statements for the Year Ended 31 March 2014

29 September 2014

The Directors of West African Minerals Corporation (AIM: WAFM) are pleased to announce its audited consolidated financial statements for the year ended 31 March 2014.

The 2014 Audited Report and Financial Statements will be posted to shareholders shortly and will be available from the Company’s website

Financial Highlights

  • Total Assets declined by 4.7% to £28.4 million (2013: £29.7 million), largely as a result of impairment recognized in respect of Dja and Minko license permits
  • Cash remains over £7.1 million (2013: £9.4 million)
  • Operational expenses continue to be rigorously controlled at all levels
  • Basic and diluted loss per share increased from 1.08 pence per share to 2.78 pence per share
  • The Company completed two fundraisings in February 2014 resulting in an increase in total share premium by £6.1 million to £66.0 million (2013: £59.6 million) and an increase in total shares in issue by 87.6 million to 376.7 million (2013: 288.0 million)

Operational Highlights

  • An Initial Inferred Mineral Resource Estimate (MRE) was completed at the near-coastal Binga license of 30.5 Mt @ 29.7% Fe at a 25% Fe cut-off grade.
  • Metallurgical test work confirmed the potential to produce a saleable magnetite concentrate from Binga ore ranging from 61% to 64% Fe using a combination of fairly coarse comminution and magnetic separation.
  • Ground-based geophysical surveys comprising gravity and magnetics carried out on Binga and the latest near-coastal discovery at Sanaga have revealed:
    • several promising targets identified at Binga that extend over an approximate 10km strike length;
    • a number of promising anomalies at Sanaga that will be drill tested during a reconnaissance programme.
  • Detailed mapping at the South Sanaga target has outlined several areas of surface exposure of magnetite bearing gneiss with surface grades ranging from 29.1% Fe to 66.3% Fe. The target mineralisation is in proximity to existing rail, port and power infrastructure (10km of main Yaoundé-Douala rail line – 60km of Douala port).
  • A trenching program at Madina in Sierra Leone has delineated a Marampa Group hematite schist target over a 1.5km strike length -- preliminary assay results from the first three trenches indicate robust mineralization ranging from 38.5% Fe to 41.4% Fe.
  • Surface mapping on gravity and magnetic targets in previously unexplored areas in the interior licenses of Lélé and North Djadom has revealed:
    • At Lélé surface showings of iron mineralisation over 5km of strike - grab sample assays returned grades ranging from 24.1% Fe to 58.7% Fe;
    • At North Djadom, surface showings of iron mineralisation traced over 4km of strike - grab sample assays over this anomaly returned grades ranging from 36.2% Fe to 56.1% Fe.

Brad Mills, President of WAFM, stated:

“The Company has made significant progress in exploring all its licenses in Cameroon and Sierra Leone since the beginning of the year. Airborne geophysics, mapping and ground geophysics have identified two potentially significant new discoveries in the near coastal regions of Cameroon and Sierra Leone and confirmed the potential for additional discoveries in the large interior leases. The exciting discovery of a new set of targets at Sanaga, located about 10km from the main Yaoundé-Douala rail line and 60km from Douala port in Cameroon, in addition to the previously reported Binga resource, presents WAFM with two potential start-up opportunities in coastal Cameroon. These projects are ideally suited to develop rapidly into cash flow generating assets with anticipated low operational and capital costs and ease of access to shipping.

The decision as to which of the two leases,  Sanaga or Binga, to infill drill to a 60-100mt low stripping ratio mineral resource estimate supported by a preliminary economic assessment (PEA) in the first quarter of 2015, will be determined by the results of reconnaissance drilling and preliminary metallurgical test work now underway at Sanaga. Our current expectation is that Sanaga may have a lower overall stripping ratio and more immediate access to rail and port facilities. If this deposit has equal or better grades and metallurgy to Binga, then we will modify the 2014 work programme in the second half of the year to complete resource drilling and a PEA on this project in preference to Binga.

Our focus is on discovering and de-risking the best of the iron ore opportunities in the near coastal environment of West Africa to deliver substantial real value to our shareholders in the form of easily developed iron ore production with low capital and operating costs.”


For further information contact:

West African Minerals Corporation

Anton Mauve

Managing Director


+44 (0) 1624 639396


Denham Eke

Chief Financial Officer


+44 (0) 1624 639396


Donna Yoshimatsu

Investor Relations and

Corporate Secretary

+1 (416) 722-2456

Beaumont Cornish Limited (Nominated Advisor)

Roland Cornish

+44 (0) 20 7628 3396


Michael Cornish


SP Angel Corporate Finance LLP (Broker)

Ewan Leggat

+44 (0) 20 3463 2260

GTH Communications

Toby Hall

+44 (0) 20 7822 7493