LONDON (ShareCast) - Afferro Mining (Other OTC: AFRIF - news) is in negotiations with POSCO Africa to work together on iron ore projects in Cameroon.
The companies have signed a memorandum of understanding (MoU) in relation to Afferro's Nkout, Ntem and Akonolinga iron ore prospects.
POSCO (KSE: 005490.KS - news) signed the document with the intention of making a project level investment and of facilitating infrastructure and project development funding.
Both parties are working towards a definitive agreement in the second quarter of this year.
Luis da Silva, Chief Executive Officer of Afferro, said: "The MoU with POSCO Africais a potentially transformational step in the continuing development of our high quality and strategically located portfolio of iron ore assets in Cameroon.
"The MoU is an endorsement of the work we have undertaken to de-risk our asset base and establish a platform from which to enter the next stage of our development."
Da Silva said POSCO has a strong presence in Africa with expertise in developing iron ore projects and related infrastructure, making them an ideal partner.
Shares in Afferro dropped 0.32% to 77.25p at 10:50 Monday.