London Mining

London Mining secured an option to acquire the mining rights at the Marampa mine in December 2005. After securing funding, London Mining was able to exercise the option in January 2006 and in September 2006 the Marampa mining lease was assigned to LMC, a 100% subsidiary of London Mining. The Marampa mine recommenced production in December 2011.

London Mining is developing Marampa in stages. The current operation will be expanded to a capacity of 5Mtpa of high quality sinter concentrate in 2013 with the resource able to support a mine life of over 30 years at this rate.  A bankable feasibility study outlining an expansion to 9Mtpa was completed in Q4 2012.

CGMR intends to defend this claim to the fullest extent and is also pursuing various claims and counterclaims that it believes it has against the Sellers for their non-compliance with the acquisition terms, including a claim for US$15 million for breach of contract.

London Mining acquired a 50% interest in China Global Mining Resources (BVI) Limited (“CGMR BVI”) in April 2009.  The remaining 50% interest is held by Wits Basin Precious Minerals Inc.  Also in April 2009, CGMR BVI, through its Hong Kong Subsidiary, CGMR, in turn completed its acquisition of the producing Xiaonanshan iron ore open pit mine and the Sudan concentrate processing plant through the acquisition of the two PRC companies Maanshan Xiaonanshan Mining Co. Ltd and Nanjing Sudan Mining Co. Ltd.