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
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Zhang Shengwei: the godfather of the vape industry
Profile Zhang Shengwei quietly grew his online vape shop and now gives Big Tobacco a run for its money. Can he survive the backlash from regulators?
By Jane Lewis Published
-
Tomorrow’s Asian giants while they are still small companies
Opinion Nitin Bajaj, portfolio manager of the Fidelity Asian Values trust, picks three Asian companies to invest in.
By Nitin Bajaj Published