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Wednesday, January 22, 2014

[BREAKING: FeOre resorts to selling its Mongolia iron ore venture to pay off convertible debt]

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BREAKING NEWS

Wednesday, January 22, 2014

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FeOre Sells Mongolia Iron Ore Stake for US$56.7 Million to Pay Off Debt

Ulaanbaatar, Mongolia -- January 22 (Cover Mongolia) -- FeOre Limited (ASX:FEO) comes out of trading halt with the announcement of a deal with China Energy (Cayman) Limited, an “independent private” company, for the sale of its interest in Topone Star Investments Limited, which indirectly holds 80% interest in its Ereeny and Dartsagt iron ore projects located in Mongolia.

The deal includes US$51.03 million cash consideration and an additional deferred payment of US$5.67 million upon when the buyer successfully lists the asset on the Hong Kong Stock Exchange.

FeOre intends to use the proceeds and cash balances (approximately US$20.1 million) to redeem its convertible bonds and undertake a share buy-back program.

FEO shares jumped as much as 41% to 5.8c in early morning trade. Last trading +36.59% to A$0.056 at 11:10 Sydney time (8:10 UB time)

Link to FEO release

 

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Munkhdul Badral Bontoi

Founder & CEO

Email: mogi@covermongolia.mn

Mobile: +976 9999 6779

Skype: mogibb

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