Afferro Mining said it has now signed a definitive agreement to sell its 38.5% stake in the Putu iron ore project in Liberia to Severstal Resources associate company Lybica Holdings, a deal which was announced earlier this month.

Afferro will receive an initial payment of USD 65 million in cash on completion, which is expected to be no later than February 28 2012. A further US$50 million deferred payment will also be due. Afferro would receive an additional consideration if Putu was sold to a third party in the future.

Lybica already owns the other 61.5% of the Liberian joint venture project. It is acquiring the remaining 38.5% from Afferro and will thus take full control of the project.

The funds will allow Afferro to accelerate the development of its wholly owned Nkout iron ore project in Cameroon, and will enhance its negotiating position as it seeks a strategic partner for Nkout.

The company is calling a special meeting for January 31 2012 where the sale will be put to shareholders.

(Sourced from proactiveinvestors.co.uk)