Equatorial Resources Prepares for March Arbitration as Guinea Iron Ore Targets Impress
Equatorial Resources reports robust December quarter results, highlighting promising iron ore exploration in Guinea and gearing up for a pivotal arbitration hearing against the Republic of Congo in March 2025.
- Final arbitration hearing against Republic of Congo scheduled for March 2025
- Exploration Target at Nimba Alliance Project estimated between 260–660 million tonnes of iron mineralisation
- High-grade iron assays up to 66% Fe confirmed at Canga D1 and hard rock T5 targets
- Company holds $12.6 million cash reserves to fund exploration and legal proceedings
- ICSID tribunal dismissed Congo’s counterclaims, strengthening Equatorial’s position
International Arbitration: A High-Stakes Legal Battle
Equatorial Resources Limited (ASX: EQX) is entering a critical phase in its protracted legal dispute with the Republic of Congo. The final hearing for its international arbitration case, lodged through its Mauritian subsidiary EEPL Holdings, is set for 10–14 March 2025 in Paris. This arbitration stems from Congo’s alleged unlawful expropriation of Equatorial’s iron ore assets at the Badondo and Mayoko-Moussondji projects.
Following the hearing, a final award is anticipated within six to twelve months, potentially unlocking compensation claims ranging from US$395 million to US$1.25 billion, excluding interest and costs. The dismissal of Congo’s counterclaims by the ICSID tribunal in January 2024 has fortified Equatorial’s legal stance, underscoring the company’s confidence as it prepares to present its case in person.
Nimba Alliance Project: Unlocking Iron Ore Potential in Guinea
On the exploration front, Equatorial continues to advance its Nimba Alliance Iron Ore Project in Guinea, acquired in July 2023. The project boasts a substantial landholding within the prolific Nimba Iron Ore Corridor, strategically located near major iron ore developments including Robert Friedland’s HPX project.
Recent assay results have confirmed high-grade iron mineralisation, with grab samples from the Canga D1 target yielding grades up to 66% Fe over a 10km strike. Similarly, the hard rock T5 target has demonstrated mineralisation between 62% and 64% Fe across an 8km strike. These findings underpin an initial Exploration Target estimated between 260 and 660 million tonnes at grades ranging from 35% to 65% Fe, positioning the project as a potentially significant iron ore resource.
Financial Position and Strategic Outlook
Equatorial’s financial footing remains solid, with approximately $12.6 million in cash as of 31 December 2024 and 131.4 million shares on issue. This liquidity supports ongoing exploration activities at Nimba Alliance and funds the costly arbitration process. The company’s management, including former CEO and current Non-Executive Director John Welborn, is actively engaged in both operational and legal fronts, signaling a dual focus on resource development and dispute resolution.
Despite the arbitration dispute, Equatorial maintains a constructive stance toward dialogue with the Republic of Congo, expressing openness to a mutually satisfactory settlement. The Badondo project’s location near Fortescue Metal Group’s Belinga Iron Ore Project highlights the strategic importance of Equatorial’s assets within a potentially globally significant iron ore region.
Looking Ahead: Exploration and Legal Milestones
With the final arbitration hearing imminent and exploration results continuing to validate the Nimba Alliance Project’s potential, Equatorial Resources stands at a pivotal juncture. The company’s ability to secure compensation or reinstatement of its Congo assets could materially impact its growth trajectory, while ongoing exploration success in Guinea may unlock new value for shareholders.
Bottom Line?
Equatorial’s March arbitration hearing and advancing Guinea exploration set the stage for a transformative year.
Questions in the middle?
- What will be the financial and operational impact if Equatorial secures a favorable arbitration award against Congo?
- How might further drilling and exploration at Nimba Alliance refine the current Exploration Target and resource estimates?
- Could Equatorial’s openness to settlement with Congo lead to a negotiated resolution before the arbitration award?
