News

April 15, 2009

Mano River And African Aura Merge To Create A Gold And Iron Ore Specialist With Cash In The Bank And Big, Big Plans

By Alastair Ford

You get a bit of a feel for the way Luis da Silva’s mind is working when, mid-way through a discussion on the proposed merger between his company, Mano River Resources, and fellow West African-focused explorer African Aura, he starts talking about an iron ore “division”, instead of talking simply about good old-fashioned iron ore “projects”. On the face of it that sort of talk involves jumping several guns, not the least of which is that the deal between African Aura and Mano has yet to be consummated. At the very least some sweet talking to Canadian investors is required on the part of the Mano board. But looked at another way it makes perfect sense.

Mano’s recent strength and its robust stance in the face of the current global financial crisis has in large part been due to the security provided by having a big powerful friend in the shape of Russian steel giant Severstal. And Severstal really is a giant – according to the Metal Bulletin’s steel makers rankings for 2008, the company is 12th in the global pecking order. So, yes the post- credit crunch playground may be a nasty place to play, but with a big burly Russian at your very...