Afferro Mining has confirmed a tax settlement with the Liberian government over the sale of the company's minority interest in Severstal Liberia Iron Ore to Lybica, an affiliate of Severstal.
The exploration and development organisation and its wholly-owned subsidiary Mano River Iron Ore Holdings have entered into an amendment over the sale of Afferro's 38.5% stake in Severstal.
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Lybica will pay $50m to Mano in full and final satisfaction of the balance of the purchase price payable under the transaction within seven business days.
Chief Executive Officer, Luis da Silva, said: "By advancing the deferred element of the sale proceeds from our former minority interest, it enables the company to strengthen its balance sheet in an uncertain economic climate, when cash is at a premium. After the receipt of these funds, the company will have a cash position of $90m leaving it well-placed to advance its projects, while continuing its negotiations with potential strategic partners."
Afferro has a market capitalisation of £81.65m. Shares were up 6.75% to 83.00p Friday.
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