Business
Afferro signs definitive sale and purchase agreement to divest interest in the Putu Iron Ore Project for a minimum of US$115 million cash consideration
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES./ ...
About this update from Affinity Metals Corp
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US\n NEWS WIRE SERVICES./\n\n\nTSX-V: AFF\n\n\nAIM: AFF\n\n\nLONDON, UK, Dec. 23, 2011 /CNW/ - Further to the announcement of 12\n December 2011, Afferro Mining Inc. (\"Afferro\" or the \"Company\"), a\n TSX-V / AIM listed exploration and development company is pleased to\n announce that Afferro and its wholly owned subsidiary, Mano River Iron\n Ore Holdings Limited (\"Mano\"), have entered into a definitive Sale and\n Purchase Agreement (the \"SPA\") with Lybica Holdings B.V. (\"Lybica\"), an\n affiliate of ZAO Severstal Resources (\"Severstal\"), for the sale of its\n 38.5% interest in the Putu iron ore project in Liberia (\"Putu\") (the\n \"Transaction\"). Lybica currently holds the remaining 61.5% interest in\n Putu.\n\n\nTransaction Key Terms:\n\n\nAfferro to receive a cash payment of US$65 million on completion;\n\n\nAfferro's right to request a deferred payment of US$50 million cash;\n\n\nPotential additional consideration should Putu be sold to a third party;\n\n\nAfferro released from any further capital contribution to fund Putu from\n 1 January 2012; \n\n\nTransaction subject to shareholder and regulatory approvals;\n\n\nFunds will be used to accelerate the Company's development strategy for\n its 100% owned Nkout iron ore project in Cameroon; and\n\n\nProceeds will enhance Afferro's negotiating position in attracting a\n strategic partner for Nkout.\n\n\nDetailed commercial terms of the Transaction are set out in the\n announcement released on 12 December 2011.\n\n\nNo revenue is attributable to Putu as the project is not in production.\n As at 30 November 2011, the Company had accounted for a carrying value\n for the Putu Project of US$22.2 million.\n\n\nTiming and next steps:\nApproval from shareholders and the TSX-V is, inter alia, a condition of\n the SPA and will be required in order to complete the sale transaction.\n An information circular setting out the details of the transaction and\n the notice of the special meeting of shareholders will be sent to the\n Company's shareholders in due course.\n\n\nThe anticipated timetable of principal events relating to the\n Transaction is as follows:\n\nRecord date to establish entitlement to attend and vote at the Special\n Meeting\n\n\n28 December 2011\n\n\nPublication and Posting...