UK- and Canada-listed African Aura Mining has announced that it has received the last tranche in the amount of $4.2 million from the Russian steel and mining company Severstal for its stake in the Putu iron ore project in eastern Liberia, West Africa.
Severstal paid the first tranche of $8.3 million for the shares acquired in the original Putu project joint venture company, African Iron Ore Group, now named Severstal Liberia Iron Ore, in December 2008, and had to pay the remainder by December 10 this year.
Since May 2008, Severstal holds a 61.5 percent interest in the Putu project, while its partner African Aura Mining retains a 38.5 percent interest in the project.
As SteelOrbis previously reported, in September this year Severstal signed a 25-year mineral development agreement for the Putu iron ore project with the government of Liberia. The Putu field has a mineral resource of 1.08 billion mt of ore with 37.6 percent Fe content. The expectations from the site are 20 million mt per year of magnetite concentrate production.