Afferro Mining has received final approval from the TSX Venture Exchange to divest its stake in the Putu iron ore project, located in Liberia.

The sale and purchase agreement, estimated to be worth $115m, was first signed on 23 December 2011.

The approval will enable Afferro Mining to sell a 38.5% interest in the iron ore project, to Lybica Holdings B.V, an affiliate of ZAO Severstal Resources.

Lybica, which currently owns 61.5% of the Putu joint venture project, will now hold full control over the Liberian project.

The Putu project has an estimated Inferred Mineral Resource of 185 Mt of oxide material, with a grade of 37.8% Fe, 17 Mt of haematite itabirite at 48.25% Fe and 2,173 Mt of magnetite itabirite at 33.7% Fe.

The sale will enable Afferro to move forward with the development of its wholly-owned Nkout iron ore project in Cameroon.

The transaction is expected to be complete no later than 28 February 2012.

On completion of the sale, Afferro will receive an initial payment of $65m on cash and a further $50m deferred payment will also be due.

Afferro will receive an additional payment if Putu is sold to a third party in the future.