* Offtake would help secure future of Marampa mine
* African Minerals and Marampa agreed to share transport
By Silvia Antonioli
LONDON, Dec 1 (Reuters) - Romanian businessman Frank Timisis in talks with trader Gerald Metals about an offtake agreementfor iron ore from the Marampa mine in Sierra Leone, which Timishas bought from the administrators of London Mining,industry sources said.
Timis, who is chairman and founder of African Minerals, a heavily indebted rival to London Mining in SierraLeone, bought the Marampa mine last month through his privatevehicle Timis Mining Corporation.
Signing an offtake deal, whereby a buyer prepays for aportion of future production, would give Timis's private companyfinancial support to operate the Marampa mine.
London Mining went into administration after struggling with high costs, a sharp drop in iron prices and the impact ofthe Ebola virus on its operations in West Africa.
"Timis is in advanced talks with Gerald Metals for anofftake on Marampa," said one of the sources. "If they haven'tsigned an agreement already it should be a matter of days now."
Gerald Metals and Timis Corporation declined to comment.
African Minerals' Tonkolili mine neighbours the Marampamine, both of which being of vital importance for the economy ofSierra Leone.
The two assets would both benefit from sharinginfrastructure to export the ore but London-listed AfricanMinerals said when Marampa was put up for sale that it haddecided not to try to buy it because of the potential impact onits own debt refinancing schedule.
After buying the mine, Timis Mining Corporations then wenton to agree access for Marampa to African Minerals' transportinfrastructure.
However, African Minerals said earlier on Monday it hadstarted to shut down its operations in Sierra Leone because itdid not have enough working capital. (Editing by Greg Mahlich)