Affero releases details of Putu sale

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.

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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.