Afferro Mining: 'No certainty formal offer will be forthcoming'

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LONDON (ShareCast) - AIM-listed Cameroon-focused iron ore explorer Afferro Mining (Other OTC: AFRIF - news) saw its shares slide sharply on Thursday morning after it issued an update on its disussions with potential strategic partners.

The group is currently engaged in on-going negotiations regarding a potential offer for the entire issued and to be issued share capital of the company or the option to form a strategic partnership to further develop the Nkout iron ore project.

Afferro reoprted that talks with International Mining and Infrastructure Corporation plc. as well as those with potential strategic partners were progressing.

However, negotiations with Jindal Steel and Power Limited had been terminated, the company reported, saying that Jindal's indicative offer fundamentally undervalued the company's quality, strategically located portfolio of iron ore projects in Cameroon and strong balance sheet.

The group statement said: "Whilst the company has received approaches from a number of interested parties, there can be no certainty that a formal offer will be forthcoming."

Afferro's share price was down 8.49% to 72.75p at 08:47 on Thursday morning.

MF