Russia's OAO Severstal one of the world's leading vertically integrated steel and steel related mining companies,announced on Dec 18 that the company had completed the transaction and now it holds a 100%interest in the Putu Iron Ore project in Liberia.
Afferro Mining Inc and its wholly owned subsidiary,Mano River Iron Ore Holdings Limited had entered into an agreement with Lybica Holding BV indirect subsidiary of Severstal,on purchasing a 38.5%minority interest in Severstal Liberia Iron Ore.
The transaction had been proceeded by Lybica and it paid the remaining USD 50 million to Mano in accordance with the amended agreement.
The Putu iron ore project is a 13km long iron rich ridge,located only 130km inland from the shoreline of Eastern Liberia.According to the latest research,the mineral resource estimate was increased up to 4.4 billion tonnes,with an average 34%iron grade in Oct 2012.The Agreement term is for a period of 25 years and this can be extended further in line with the life of the mine.
Severstal held a 61.5%interest in Putu from 2008 until Apr 2012.
