African Metals Purchases a Concentration Plant and is Preparing to Commence Mining and Processing of Oxide Material at its Luisha South Project, Katanga Province, Democratic Republic of Congo. Secures Financing and Off-Take Agreement from Traxys.

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[{"type":"text","content":"\n\n\n\n\n\nTrading Symbols TSXV: AFRFrankfurt: OWW\n\n\nVANCOUVER, Sept. 19, 2011 /CNW/ - African Metals Corporation (the\n \"Company\" or \"AFR\") is pleased to report that one of its subsidiaries\n has purchased a Dense Media Separation (DMS) plant, spiral bank and\n associated ancillary plant equipment, to commence mining and processing\n of oxide material from the Luisha South Project in the Democratic\n Republic of the Congo (\"DRC\").\n\n\nHighlights\n\n\nAFR's subsidiaries have:\n\n\nSecured a US$3.7 million loan agreement with Traxys Europe SA\n\n\nExecuted a 4 year Off-take Agreement with Traxys Europe SA\n\n\nPurchased a DMS Plant and Spiral bank with associated equipment\n\n\nExecuted a Management Contract with MJ Investments for managing the\n mining and processing of the Luisha South material, and\n\n\nExpect to commence production in October 2011\n\n\nLoan Facility by Traxys Europe SA\n\n\nKundelungu Minerals sprl (\"Kundelungu\"), a subsidiary of AFR in the DRC,\n has entered into a secured Loan Agreement with Traxys Europe SA,\n (\"Traxys\"), whereby Traxys has provided a loan facility of US$3.7\n million to purchase a DMS Plant and associated equipment which will\n enable AFR's 75% owned DRC subsidiary, Luisha Mining Enterprise Sprl\n (\"LME\"), to commence production at its Luisha South Project.\n\n\nUnder the terms of the agreement, Kundelungu will repay the loan\n facility from 60% of production profits.  The Company has organized the\n pledge of the shares of certain of its key subsidiaries to Traxys to\n provide security for the loan.\n\n\nOff-Take Agreement with Traxys Europe SA\n\n\nAfrican Metals Corp through LME has executed an exclusive Off-Take\n Agreement with Traxys. The Agreement is for Traxys to purchase at a\n competitive London Metal Exchange market price the copper oxide and\n sulphide concentrates produced from the Luisha South Project for a\n period of 48 months from commencement of production.\n\n\nOperating from more than 20 global offices with over 250 employees,\n Traxys primarily focuses on the marketing and sourcing of base metals\n and concentrates, minor and alloying metals, industrial minerals and\n chemicals, materials for steel mills and foundries and carbon products.\n Traxys also offers financial and logistical solutions for the\n Ferroalloy, Metal, Mineral, Mining and...

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