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.

Afferro said a single payment of $9.75m will be made to all tax claims relating to the deal.

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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021