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Friday, 14 December 2012
Afferro Mining: Christmas comes early as Severstal agrees to bring forward $50mln payment
Afferro (LON:AFF, CVE:AFF) said it has brought forward the deferred element of its sale of a 38.5% stake Putu iron ore project in Liberia by six months.
It means it will receive an injection of US$50mln from Russian steel giant Severstal in the next seven days, taking its cash balances to US$90mln.
Afferro was originally slated to be paid in June.
It said negotiations with potential strategic partners for its Nkout iron ore deposit in Cameroon were continuing.
Chief executive Luis da Silva added: "By advancing the deferred element of the sale proceeds from our former minority interest, it enables the company to strengthen its balance sheet in an uncertain economic climate, when cash is at a premium.”
The company has received a total of US$115mln for its minority interest in Putu.