Afferro Mining: 'no certainty formal offer will be forthcoming'

AIM-listed Cameroon-focused iron ore explorer Afferro Mining saw its shares slide sharply on Thursday morning after it issued an update on its disussions with potential strategic partners.

AIM-listed Cameroon-focused iron ore explorer Afferro Mining saw its shares slide sharply on Thursday morning after it issued an update on its disussions with potential strategic partners.

The group is currently engaged in on-going negotiations regarding a potential offer for the entire issued and to be issued share capital of the company or the option to form a strategic partnership to further develop the Nkout iron ore project.

Afferro reoprted that talks with International Mining and Infrastructure Corporation plc. as well as those with potential strategic partners were progressing.

However, negotiations with Jindal Steel and Power Limited had been terminated, the company reported, saying that Jindal's indicative offer fundamentally undervalued the company's quality, strategically located portfolio of iron ore projects in Cameroon and strong balance sheet.

The group statement said: "Whilst the company has received approaches from a number of interested parties, there can be no certainty that a formal offer will be forthcoming."

Afferro's share price was down 8.49% to 72.75p at 08:47 on Thursday morning.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021