In March 2017 Timis Mining Corporation’s operations at the Marampa iron ore mine became insolvent.
As a result the mining licence was offered for sale by the Sierra Leone government and in a competitive process was acquired by SL Mining, a subsidiary of Gerald Group.
Legislation identified the assets required for ongoing and essential ‘care and maintenance’ operations and also, how the assets should be valued for the purpose of compensation to the out going licensee .
Interpreting the legislation provided a detailed valuation scope defining the basis of value and in-scope assets.
A detailed inspection and research process was performed to arrive the market value of the ‘care and maintenance assets’ and also the other process plant remaining on site.
The valuation supported Gerald’s investment in the mine enabling them to successfully negotiate the acquisition of the processing assets and re-commence production.