Afferro delays Putu sale

published 2 April 2012

Afferro Mining, the AIM-listed iron ore explorer, is delaying the 115m-dollar sale of its stake in the Putu iron project in Liberia.

Afferro agreed to sell its 38.5% stake in the Putu operation to the majority owner Severstal but frustratingly for both firms the Liberian government decided to whack a 15% tax on the transaction.

Afferro says having taken legal and tax advice it does not believe it is liable for the tax. Both Severstal and Afferro will continue to discuss the issue with the Liberian authorities, with a new "outside" closing date scheduled for April 4th.