Hi again,
Interesting announcement today from a company i don't know very much about. Could this be a scenario in Fancamp's not too distant future? If they could they get 75-115 million for the 4B iron ore resource, they would get my vote. And the NSR stays with us. I know what the NAV says, but I want to be realistic.
AFFERRO MINING INC.
Afferro divests interest in the Putu Iron Ore Project
for minimum US$115 million cash
Afferro Mining Inc. ("Afferro" or the "Company"), a TSX-V / AIM listed exploration and development company is pleased to announce that Afferro and its wholly owned subsidiary, Mano River Iron Ore Holdings Limited ("Mano"), have entered into a legally binding heads of terms agreement (the "Heads of Terms") with Lybica Holdings B.V. ("Lybica"), an affiliate of ZAO "Severstal Resources" ("Severstal"), for the sale of its 38.5% interest in the Putu iron ore project in Liberia ("Putu"). Lybica currently holds the remaining 61.5% interest in Putu.
Transaction Highlights:
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Afferro to receive a cash payment of US$65 million on completion;
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Afferro's right to request a deferred payment of US$50 million cash;
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Additional consideration should Putu be sold to a third party;
- Afferro released from any further capital contribution to fund Putu from 1 January 2012;
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Transaction subject to shareholder and regulatory approvals;
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Funds will be used to accelerate the Company's development strategy for its 100% owned Nkout iron ore project in Cameroon; and
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Proceeds will enhance Afferro's negotiating position in attracting a strategic partner for Nkout.
http://www.afferro-mining.com/s/NewsReleases.asp
