Afferro’s sale of Putu iron ore project stake to Severstal delayed

Wednesday, 29 February 2012 17:52:29 (GMT+2)

British mineral exploration and development company Afferro Mining Inc. has announced that it has agreed with Russian steelmaker Severstal to delay the closing of the sale of Afferro's 38.5 percent minority interest in the Putu iron ore project in Liberia to Severstal's indirect subsidiary Lybica Holding B.V., due to ongoing tax talks with Liberia's finance ministry.

The ministry claims that Lybica should withhold tax at the rate of 15 percent upon payment of the purchase price of the transaction. However, Afferro and Severstal have stated that such a tax is not applicable to the transaction.

Afferro and Severstal have agreed to delay the closing of the sale until March 31, 2012.