West African Iron Ore Corp. (TSXV:WAI) announced that it has signed a binding letter of intent with new investor China International Fund Limited for CAD 30,000,000 on September 3, 2012. The investor agreed to finance up to CAD 10,000,000 by way of up to 10 drawdowns of CAD 1,000,000 each progressively based on the capital expenditure requirements. Each drawdown will be in the form of a secured convertible debenture with a term of five years and an 8% annual interest rate. During the term of the debentures, the investor will have the option to convert all or any portion of the outstanding debentures into common shares at a conversion price of CAD 0.10 per share to the extent that the investor's aggregate beneficial ownership of common shares will not exceed 19.9% of the issued and outstanding capital at the time of exercise. The investor has also agreed to advance an additional CAD 20,000,000 on similar terms, subject to the approval of the TSX Venture Exchange, upon confirmation that certain mineral licenses have been renewed, and that a technical report disclosing a minimum of 350Mt of iron ore on the Forécariah Tenement has been prepared.

On September 7, 2012, the company announced that TSX Venture Exchange has accepted for filing documentation with respect to the first tranche of the transaction for CAD 2,000,000 of convertible debentures. The placees beneficial ownership of common shares of the company will not exceed 19.9% of the issued and outstanding common shares of the company at the time of exercise.

On September 13, 2012, the company announced that it has received CAD 1,000,000 in first tranche of the transaction. The company has also recorded interest expense of CAD 3,507 for the period ending September 30, 2012.

On October 9, 2012, the company announced that its legal counsel is trying to get an agreement signed for the transaction.

On October 24, 2012, the company announced that it has received CAD 1,000,000 in second tranche of the transaction.