Iron ore explorer Afferro Mining (LON:AFF, CVE:AFF) said talks are continuing with would-be buyer International Mining and Infrastructure Corporation (LON:IMIC) following confirmation the latter has the funds needed to launch a bid.
Last week IMIC confirmed it had raised the £65mln (US$100mln) that would be used to satisfy the cash element of any offer. Indicative terms value Afferro at between £105mln and £147mln.
As always with holding statements of this kind, Afferro added this cautionary note: “There can be no certainty that any formal offer for the company will be forthcoming nor as to the terms of any such offer.”
In a separate release, IMIC revealed it has appointed an adviser who will provide “strategic, commercial and technical support on issues such as financial structuring and contractual negotiations”.
He is Martin Botha, who in spent the last two decades with South Africa’s Standard Bank.
IMIC chairman Haresh Kanabar said: "We are delighted to have access to Martin Botha's extensive experience of the mining and financial sectors in Africa and elsewhere during this exciting phase of IMIC's development.
“His knowledge of financial solutions in the commodity and resource sectors will be invaluable in the delivery of our plans."