OAO Severstal one of the world's leading metals and mining companies, has announced today that its Severstal Resources mining division has concluded the transaction to purchase up to a 61.5% stake in African Iron Ore Group Ltd («AIOG») which owns, through subsidiaries, the exploration rights for an iron ore deposit in the Putu Range area, Liberia (Western Africa).
Severstal will pay $37.5 million for a 61.5 % stake in AIOG. In light of Severstal Resources' majority interest, AIOG will be re-named Severstal Liberia Iron Ore Ltd.
According to preliminary data, it is estimated that the Putu Range deposit contains more than 500 million tons of iron ore. This number may substantially increase as a result of a detailed exploration exercise which is planned by Severstal Resources.
Roman Deniskin, Severstal Resources CEO, said: "The development of the Putu Range iron ore project is a significant step in the dynamic development of our mining business. From this new region we will supply production to the European and North American markets".