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Monday, 16 September 2013
Afferro Mining shareholders approve IMIC takeover
Afferro Mining (LON:AFF) (CVE:AFF) says that its shareholders have voted for iron ore peer International Mining & Infrastructure (LON:IMIC) to acquire the company in a US$200 million deal, at a special meeting held in Vancouver today.
The plan was approved by 97.03 per cent of the shareholders present in person or represented by proxy at the meeting. The deal still needs the approval of IMIC's shareholders, as well as final court approval and other closing conditions.
It is expected that the deal will close by the end of October.
IMIC tabled a 120p a share bid for Afferro, which consists of 80p in cash and a convertible loan note worth a further 40p.
IMIC’s takeover of Afferro will be transformational for the latter’s flagship project, the 2.5bn tonne Nkout iron ore deposit in Cameroon.
The plan is to create the infrastructure required (namely rail and port) to get ore from the mine to the leading export markets of the world.
On completion of a deal, Afferro will become a wholly-owned subsidiary of IMIC.
"We are pleased that Afferro shareholders and optionholders have voted with the Board of Afferro at this special meeting to consider the company's acquisition by IMIC and the opportunity to further progress Afferro's flagship Nkout project and unlock value through IMIC's ability to continue to de-risk the project and provide an infrastructure solution," said Afferro chairman David Netherway.
"We now look forward to the completion of the transaction, which we expect to take place next month."