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Monday, 25 February 2013
Afferro Mining prepares to team up with Korea's POSCO in Cameroon
Afferro Mining (LON:AFF, CVE:AFF) is close to sealing a deal with one of the world’s largest iron and steel companies, which would fund the development of its assets in Cameroon.
The African arm of Korea’s POSCO, has signed a memorandum of understanding (MOU) with the AIM and TSX-listed miner with the AIM of completing a definitive agreement in the second quarter of the year.
In a short stock exchange statement, Afferro said the accord is far broader than the group’s flagship Nkout asset and also covers the Ntem and Akonolinga prospects.
Planned investment would be made at the project level and focused on the infrastructure required to get the mines off the ground and funding needed to develop the operations.
Chief executive Luis da Silva said: "The MOU with POSCO Africa is a potentially transformational step in the continuing development of our high quality and strategically located portfolio of iron ore assets in Cameroon.
“The MOU is an endorsement of the work we have undertaken to de-risk our asset base and establish a platform from which to enter the next stage of our development.
“POSCO has extensive expertise in developing iron ore projects and related infrastructure, and an existing presence in Africa, making them an ideal partner to work with us to unlock long term value from our project portfolio.
“We are pleased to have reached a stage of negotiations with a potential partner with the credibility and capabilities of POSCO Africa, which we firmly believe reflects the potential of our assets."