London Mining heads to Brazil

ACQUISITION OF IRON ORE MINE IN BRAZIL

London Mining, a UK based iron ore mining company, is pleased to announce that the company has completed the acquisition of Minas Itatiaiucu Ltda., an operating iron ore mine in the state of Minas Gerais, Brazil.

Minas Itatiaiucu has been in operation since 1969 and the mine has a resource of 268 million tonnes grading 47,2%. The mine employs a work force of more than 100 highly qualified individuals. The current mining rate is 1,5 million tonnes per annum to serve local customers. London Mining intends to increase this to at least 3 million tonnes per annum, by processing 17 million tonnes of stockpiles, which have been accumulated, and later by adding additional shifts to the mining operation.

Graeme Hossie, Finance Director of London Mining said: "This acquisition provides London Mining immediate and ongoing cash flow from current mining operations and substantial expansion potential".

In addition to completing the purchase of the mine, London Mining's recent capital raise of USD102 million through Pareto Securities, will fund substantial CAPEX to produce iron ore concentrates for the international and Brazilian domestic markets

London Mining's approach is to respect local values while applying capital, human and technical resources to create value for all stakeholders.

Chris Brown, Managing Director of London Mining, said: "The expansion of the Brazilian operation forms an important part of London Mining's growth strategy.. London Mining is looking forward to building on Minas Itatiaiucu's successful operations to bring the business to a new level."