Afferro Mining soars on Putu sale
Afferro Mining, the west Africa focused iron ore company, is to sell its 38.5% stake in the Putu iron ore project in Liberia.
Afferro Mining, the west Africa focused iron ore company, is to sell its 38.5% stake in the Putu iron ore project in Liberia.
The sale, to the majority shareholder Severstal, will see an initial cash payment of $65m in addition to a deferred payment of $50m. If the project is then sold on to a third party Afferro will be due a further consideration.
The deal still needs to win regulatory and shareholder approval.
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
Commenting on the transaction, Afferro's Chief Executive, Luis da Silva, said: "Divesting the minority stake in Putu to generate total cash proceeds of at least US$115 million allows the Company to focus on its 100% owned flagship Nkout project (in Cameroon) and minimises shareholder dilution."
Shares in Afferro jumped 40% in morning trading to hit 58.35p shortly after the announcement of the sale. Over the year to date the stock has fallen 67%.
BS
-
Zoopla: UK property supply hits eight-year high ahead of general election
News More homeowners are putting their properties up for sale but many are relisting after failing to find a buyer last year - is now a good time to buy?
By Marc Shoffman Published
-
What’s happening to the NatWest share sell-off? Impact of general election 2024 explained
The UK government has held shares in NatWest Group since the 2008 Financial Crisis. But a plan to sell off a large chunk of them appears to have been delayed.
By Henry Sandercock Published