TIDMIMIC TIDMAFF

RNS Number : 3678H

Intl Mining & Infrast Corp PLC

11 July 2012

INTERNATIONAL MINING & INFRASTRUCTURE CORPORATION PLC

Acquisition of Interest in Afferro Mining

International Mining and Infrastructure Corporation plc. ("IMIC" or "the Company") (AIM: IMIC) is pleased to announce that it has acquired a significant 3.9% stake in Afferro Mining Inc. ("Afferro") (AIM/TSX-V: AFF) for GBP2.0 million, representing 4,132,231 shares at 48.40p. This is IMIC's first investment in a junior African iron ore developer.

Afferro is an established TSX-V and AIM listed iron ore development company with a number of projects in Cameroon. It has a strong balance sheet, with a recently reported net cash balance of US$51 million and a further deferred cash receivable of US$50 million gross. It is focused on the fast track development of its 100% flagship asset, the Nkout Iron Project, located at the heart of a rapidly emerging iron ore district in the south of Cameroon. Afferro is currently evaluating the potential for a DSO (Direct Shipping Ore) operation, which would generate early cashflow ahead of the full development of the project.

The stake has been acquired under a market transaction with several parties.

IMIC plans to turn this stake into a strategic one, through the advancement by African Iron Ore Group Ltd ("AIOG"), IMIC's strategic partner, of a comprehensive infrastructure package that AIOG plans to put forward to Afferro in collaboration with its assembled consortium of best-in-breed Chinese infrastructure partners. The recently announced appointment of AIOG's Vice Chairman, Mr. Ousmane Kane, to the Afferro board of directors should contribute to advancing the close cooperation between the parties.

If AIOG's efforts are successful, this should further consolidate and value-enhance the IMIC relationship with Afferro.

Commenting on the transaction, Haresh Kanabar, Chairman, said: "I am delighted to announce our first significant stake in a junior African iron ore developer, which is an important milestone in the development of IMIC's investment strategy. We are gratified for the support that our strategic partner, AIOG, has provided in assisting IMIC with this transaction and will further provide in helping to convert this initial investment into a strategic stake.

"We believe Afferro offers an attractive opportunity alongside our shared interest, with AIOG, in the Simandou South infrastructure related project, SPV Simfer. Our recent successful placing reinforces our progress in this regard and demonstrates our determination to build an important asset-ownership position in the African iron ore sector through strategic stakes in mining and related infrastructure projects."

 
 Contacts: 
 
 International Mining and Infrastructure           www.imicplc.com 
  Corporation plc 
 Haresh Kanabar, Chairman                     +44 (0) 20 7290 3340 
 James Ward, Finance Director 
 
 WH Ireland Limited                           www.wh-ireland.co.uk 
 Mike Coe / Marc Davies                       +44 (0) 117 945 3470 
 
 Buchanan 
 Mark Court / Fiona Henson / Sophie Cowles    +44 (0) 20 7466 5000

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQURANRUNABAAR

Afferro Min (LSE:AFF)
Historical Stock Chart
From Jan 2025 to Feb 2025 Click Here for more Afferro Min Charts.
Afferro Min (LSE:AFF)
Historical Stock Chart
From Feb 2024 to Feb 2025 Click Here for more Afferro Min Charts.