Zanaga Iron Ore Co Ltd (AIM:ZIOC, FRA:6ZA), in its annual results statement, told investors that new funding and a proposed strategic investment from Red Arc Minerals have put its Republic of Congo iron ore project on a clearer path toward a construction decision in 2027.
The AIM-listed developer said RAM’s binding term sheet could see the private investment company inject up to US$25 million into Jumelles, the subsidiary holding the Zanaga project, for a 20% stake. RAM also has an option to pay US$125 million for a further 67.5%, which would lift its holding to 87.5%.
ZIOC would receive a 1.0% net sales revenue royalty on all iron ore concentrate sales if the second tranche closes, though RAM can buy back half of that royalty for US$50 million. The company said transaction documentation is expected to be completed during July 2026.
The update came alongside audited 2025 results, which showed a comprehensive loss of US$7.2 million, against US$2.3 million a year earlier. Cash stood at US$1.28 million at the end of December and US$5.40 million at 30 June 2026, following a £5.7 million equity raise completed in May at 4p per share.
ZIOC said 2025 project work identified US$2.2 billion of potential life-of-mine cash cost savings and confirmed that Zanaga can produce premium DRI-grade pellet feed concentrate, increasing estimated life-of-mine revenue potential by US$11.325 billion. The project has a 6.9 billion tonne resource and a 2.1 billion tonne reserve, with all key permits in place.
