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International Mining & Infrastructure Offers To Buy Afferro

By RTT News, April 17, 2013, 03:24:00 AM EDT



(RTTNews.com) - International Mining & Infrastructure Corporation Plc. or IMIC announced that it submitted a proposal to the board of Afferro Mining Inc (AFF.L, AFF.V) in relation to a potential offer to acquire the entire issued and to be issued share capital of Afferro.

As per the proposal, Afferro shareholders would be given three options for receiving consideration in respect of their shares, namely: 80 pence in cash plus a convertible loan note of 20 pence, making a total of 100 pence for each Afferro share; or 50 pence in cash plus a convertible loan note of 70 pence, making a total of 120 pence for each Afferro share; or shares in IMIC equivalent to a valuation of 140 pence for each Afferro share.

The cash portion in the options will be subject to a limit of US$100 million. The convertible loan notes will carry a coupon of 8%, rolled up and paid at the end of the 24 month duration of the loan notes or on conversion into IMIC shares.

IMIC has advised Afferro that, within 15 business days at the latest, it intends to provide written undertakings that the minimum US$100 million cash is available to execute the proposal.

IMIC has also advised that further fund raising is planned at the time of IMIC's RTO, in order to leave the combined group with an appropriate level of cash to undertake the further development of the 100% owned Nkout, Ntem and Akonolinga iron ore projects as well as the 70% held Ngoa project.

Separately, International Mining and Infrastructure and African Iron Ore Group Limited or AIOG announce that they have signed a new Cooperation Agreement with CRM (Hong Kong) Trading Limited, a wholly-owned subsidiary of the leading Chinese state-owned trading enterprise, China Railway Materials Company Ltd.

As per the terms of the deal, CRM will organize and lead a consortium of world-class Chinese off-takers, which is expected to include one of the eight largest Chinese steel companies, that is intended to guarantee the purchase of the quantities of the Nkout Project's iron ore production in a procedure which will be essential to the completion of the Project's financial requirements.

IMIC noted that CRM will also be responsible for the provision of relevant licenses, permits and/or approvals required for imports of Nkout Project iron ore into China, relevant communications with Chinese government authorities, agents and traders, as well as the Project's overall marketing exercise in China.

Read more: http://www.nasdaq.com/article/international-mining--infrastructure-offers-to-buy-afferro-mining---quick-facts-20130417-00047#ixzz2QiKqAQeF