The minerals exploration company Afferro saw its share price drop on Wednesday after releasing details of the sale of its Putu iron ore asset in Liberia.
Affero announced the sale on 12 December, it now says it has signed a definitive "sales and purchase agreement" for its 38.5% interest in the project to Lybica Holdings.
Afferro will get an initial cash payment of $65m and the right to a deferred payment of $50m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
If Putu is sold on to a third party Afferro will be entitled to a further payment.
Afferro must now get shareholder approval for the transaction at a special meeting organised for 31 January 2012.
BS
The firm's share price dropped 4% on the news to 53.75p.
-
Will Poland’s new president stifle its stock market’s winning streak?Poland’s stock market has outperformed many of its European peers, but with a newly-elected populist President at odds with a Liberal government, what lies ahead?
-
Fund flows rose in April but did investors sell in May?ISA season prompted the highest level of inflows into investment funds during April but the mood may have changed in May
