Afferro Mining confirms tax settlement with Liberian government

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.

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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.

RD

MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.