Afferro, IMIC agree on terms of $190m offer
JOHANNESBURG (miningweekly.com) – Cameroon-focused iron-ore junior Afferro Mining said on Wednesday that it had agreed to terms for a $190-million offer from investment group International Mining & Infrastructure Corporation (IMIC).
IMIC, which currently owns 5% of Afferro, would offer 80p in cash, as well as a two-year convertible loan note with a principal value of 40p for each share of the TSX-V and Aim-listed junior.
Afferro chairperson David Netherway said the effective 120p-a-share proposal offered good value and the ability for further upside, providing exposure to the strong relationships built by IMIC with its key consumer, China.
“We have developed a world-class asset in the Nkout project, which, along with our other iron-ore projects, is in a substantial new iron-ore corridor running through Cameroon. It has been of the foremost importance for the board of Afferro to come back to shareholders with a revised and simplified offer to best optimise their returns,” he commented.
IMIC chairperson Haresh Kanabar added that the merger of IMIC and Afferro was “highly attractive” in that it would combine Afferro’s high-quality African iron-ore assets with a deliverable infrastructure and offtake solution.
IMIC requires the approval of at least two-thirds of Afferro’s shareholders.
Afferro's board, which, in aggregate, held 6.3% of Afferro’s share capital, confirmed that it would be voting in favour of the offer.
Subject to the completion of relevant documentation, including satisfactory final financing arrangements and the receipt of a fairness opinion from its financial adviser, as to the terms of the proposed offer, the Afferro board said it intended to recommend acceptance of the offer to its shareholders.
The proposed acquisition would also be subject to the approval of IMIC shareholders, as well as the completion of the documentation required to implement a reverse takeover under the Aim rules of the LSE.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation