Name of the Project
Zanaga iron-ore project.

Location
The project is located 30 km west of Zanaga, a regional centre of the Lekoumou department of Congo-Brazzaville.

Project Owner/s
Iron-ore exploration and development company Zanaga Iron Ore Company’s (ZIOC’s), by its subsidiary Jumelles (100%).

Project Description
The project is a highly significant asset with a 6.9-billion-tonne resource and a 2.1-billion-tonne reserve, and a forecast production rate of 30-million tonnes a year of high-grade direct iron pellet feed and very low impurity levels.

A 2024 feasibility study confirmed its strong economic viability. The proposed project will be developed in stages.

Stage 1 involves development to an initial 12-million tonnes a year of high-quality iron-ore product. The Stage 2 optional expansion will entail an 18-million-tonne-a-year expansion to 30-million tonnes a year of total product.

The primary facilities will include:

• an openpit mining operation and associated process plant and mine infrastructure;
• a slurry pipeline to transport iron-ore concentrate from the mine to the port facilities  and;
• port facilities and infrastructure – to dewater and handle iron-ore products for export to the global seaborne iron-ore market – located within a proposed third-party-built port facility.

Congo-Brazzaville’s abundant gas and energy resources create favourable conditions for potentially pelletising its high-grade iron-ore products.

The Pointe-Indienne Special Economic Zone – being developed by Arise, ZIOC’s port development partner – is well positioned for industrial operations such as pellet production. It has access to surplus electricity from the nearby Centrale Électrique du Congo power station, with which ZIOC has signed a memorandum of understanding to explore power solutions.

ZIOC has noted growing interest from parties in Saudi Arabia and the United Arab Emirates. On infrastructure development, ZIOC sees potential to build a buried pipeline with a 30-million-tonne-a-year capacity to support Stage 1 output. This would eliminate the need for a separate pipeline for the Stage 2 expansion, reducing capital costs by about $700-million. It would also lower environmental impact, speed up implementation of Stage 2, and facilitate funding through Stage 1 cash flow.

Regarding tailings management, while the base case includes a large wet tailings storage facility (TSF), ZIOC is exploring the use of thickened paste or filtered tailings to reduce water content. This could significantly lower long-term management costs and sustaining capital costs and allow for a smaller, simpler TSF that can be progressively rehabilitated. A feasibility study on this option has started.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV) of $5.21-billion and internal rate of return of 26.7%.

According ZIOC, downstream pelletisation could boost the project’s NPV by as much as $1-billion.

Capital Expenditure
Stage 1 is estimated at $1.94-billion and Stage 2 at $1.87-billion.

Planned Start/End Date
Not stated.

Latest Developments
ZIOC has signed a binding term sheet with Red Arc Minerals (RAM) for a staged investment in the project.

The proposed funding is structured in two tranches and is designed to advance the project towards a final investment decision. Tranche one provides up to $25-million in cash, paid in five equal subtranches, in exchange for a 20% interest in Jumelles. This capital is intended to fund key technical work needed in the preproduction phase.

Tranche two gives RAM the option to invest a further $125-million within 18 months after completion of tranche one, in return for an additional 67.5% fully diluted interest in Jumelles. If exercised, RAM’s total ownership would increase to 87.5%.

If tranche two closes, Zanaga would receive a 1% net sales royalty on all project iron-ore concentrate sales, with RAM holding a buy-back option to repurchase 0.50% of that royalty for $50-million. Governance rights start at closing, with RAM receiving Jumelles board representation and reserved-matter rights, and majority board representation if its ownership reaches 50.1% or higher.

The transaction remains conditional on due diligence, definitive agreements, and shareholder and regulatory approvals. The term sheet also includes a fallback mechanism, enabling ZIOC to require a share exchange into ZIOC equity at 15 pence a share if RAM does not complete tranche closings within defined timeframes.

Overall, the structure is positioned to provide project-advancement capital without immediate shareholder dilution at listed-company level while preserving ZIOC exposure through a retained stake and royalty economics.

Key Contracts, Suppliers and Consultants
DRA (process plant study); P&C (FDSO evaluation process); Centrale Électrique du Congo (technical, economic and legal aspects required for power generation and distribution for the project's Stage 1 operations); and Arise Integrated Industrial Platforms (advance the development of onshore and offshore port infrastructure for the project).

Contact Details for Project Information
ZIOC, email info@zanagairon.com.