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SEM and NTDMCC are partnering in a joint-venture with the aim of developing a manganese project in Okondja

Libreville, June 27, 2014 - Société Equatoriale des Mines and the Dubaian group, Navodaya Trading DMCC, are partnering in a joint-venture called GMFA (Gabon Manganese & Ferro Alloys) with the aim of starting exploratory works and the development of the manganese deposit in Okondja, Haut-Ogooué .

Société Equatoriale des Mines (SEM) and Navodaya Trading DMCC (NTDMCC) signed an agreement establishing the formation of a joint-venture called Gabon Manganese & Ferro Alloys (GMFA) of which 85% and 15% of the shares are owned by NTDMCC and SEM respectively.

A broader scope of activity

GMFA will be involved in all the activities related to prospecting, exploration and mining of the deposit's ore. The company will also conduct the ore processing, conditioning, storage and marketing activities.

"Local processing is a matter of very particular interest to the SEM as it is one of our missions. While discussing with NTDMCC, we stressed on the necessity to process the ore in Gabon so as to create added value and develop local skills. Our partner understood our will and we are engaging in on a sound basis." the CEO of SEM, Mr. Fabrice Nze-Bekale, highlighted.

A promising deposit

A report produced in 2005 by the Brazilian group, Vale, estimates the reserves of the deposit at 27 million tons of manganese with a grade between 35% and 40%.

"The findings of the initial works confirm the potential of the deposit and there is possibility for adding to reserves by carrying on prospecting in the surrounding plateaus." The Business Development & Strategy Manager of SEM, Mr. Bareja Youmssi stated.


Management of the company

GMFA is managed by a board of directors - consisting of seven members appointed by both parties - and an executive board headed by NTDMCC. The company is incorporated in Gabon with a head office in Libreville. Navodaya Trading DMCC (NTDMCC) is a company registered at Dubai Multi Commodities Center. The company is an associate member of Dharni Sampda Pvt, an Indian company with competencies, notably technical ones, know-how and experience in the mining industry.

"Gabon is a country endowed with abundant mineral resources. We established here in

2011 and are delighted with this opportunity to actively participate in the country's growth. We are going to attempt to enhance the manganese reserves in Okondja in order to attain a world-class manganese deposit. The hydroelectric power generated in Poubara will be used to produce ferromanganese in Gabon. This investment will allow generating local employment and contributing to the communities' education, health and welfare. We will also be investing in infrastructures, notably railway wagons as well as port facilities." The CEO of the Group Dharni Sampda Pvt, Mr. Sachin Bajla said.

Exploration investments will be funded by both partners in proportion to their shares in the project, i.e. 85% and 15% for NTDMCC and SEM respectively.

 

Finally, as mining will commence, Exploration investments will be funded by both partners in proportion to their shares in the project, i.e. 85% and 15% for NTDMCC and SEM respectively.

.Furthermore, SEM will have a call option on an additional 10% at the market value on its behalf or on behalf of other Gabonese investors.