International Mining & Infrastructure to acquire Canada’s Afferro Mining

22 May 2013 (Last Updated May 22nd, 2013 18:30)

International Mining & Infrastructure (IMIC) has agreed to acquire Afferro Mining, a Canadian iron ore development company with a focus on West-Africa, in a deal worth $190m.

Magnetite

International Mining & Infrastructure (IMIC) has agreed to acquire Afferro Mining, a Canadian iron ore development company with a focus on West Africa, in a deal worth $190m.

Under the terms of the agreement, IMIC will offer £0.80 in cash, along with a two-year convertible loan note with principal value of £0.40, for each share of Afferro.

Afferro intends to recommend the deal to its shareholders, subject to the completion of relevant documentation including "satisfactory final financing arrangements", and the receipt of a fairness opinion from its financial adviser.

IMIC chairman Haresh Kanabar said, "We believe that the combination of IMIC and Afferro is highly attractive in that it brings together Afferro's high-quality African iron ore assets with a deliverable infrastructure and offtake solution."

This combination of cash and convertible loan notes, which values the current issued share capital of Afferro Mining at about $190m, replaces the three options previously offered to Afferro in April.

IMIC plans to acquire Afferro through a Plan of Arrangement in Canada, which requires the approval of at least two thirds of the latter's shareholders.

Afferro, which holds a 100%-stake in its flagship Nkout iron ore project, has been in discussions with several investors since late 2012.

IMIC initially approached Afferro in December 2012, with plans to submit a takeover bid of between £1.15 and £1.40 per Afferro share. The investment company already owns about 5% of Afferro Mining.


Image: Afferro Mining's portfolio includes its flagship asset in Cameroon, the Nkout iron ore project that consists of high-quality magnetite. Photo: Benjamint444.

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