OAO Severstal announced the signing of a compromise and settlement agreement amongst, inter alia, the Government of Liberia, Afferro Mining Inc and the company’s indirect subsidiary Lybica Holding BV in relation to tax claims made by the Republic of Liberia in connection with the sale of Afferro’s 38.5% minority interest in Severstal Liberia Iron Ore Limited to Lybica.
The Settlement Agreement provides that the parties have agreed that a single payment of USD 9.75 million be made to the Republic of Liberia as full and final settlement for and release from all tax claims relating to the transaction. The settlement payment will be transferred within five business days from funds previously escrowed by Afferro, as disclosed on April 4th 2012.
