Afferro Mining Climbs After Takeover Approaches: Vancouver Mover
Afferro Mining Inc. (AFF), a developer of iron-ore projects in Cameroon, rose the most in more than a year after saying it received two takeover approaches.
Afferro jumped 40 percent to C$2.10 in Toronto, the biggest gain since August 2011. The stock rose 11 percent earlier in London.
Afferro received an “initial approach” from International Mining & Infrastructure Corp. Plc, or IMIC, it said in a statement. IMIC would be prepared to make an offer, subject to completion of satisfactory due diligence and certain other conditions at 115 pence ($1.87) to 140 pence a share, Vancouver- based Afferro said.
IMIC bought a 3.9 percent stake in Afferro for 2 million pounds ($3.2 million) with the intention of turning the holding into a strategic one, it said in a statement on July 11. Afferro, which has doubled this year, owns the Nkout, Ntem and Akon iron-ore projects in Cameroon.
“The approach from IMIC is at a very early stage,” Afferro said today. “There can be no certainty that a formal offer will be forthcoming.”
Afferro said it’s also in talks with anther party about a possible offer, which precludes it from engaging in discussions with IMIC until Jan. 13. IMIC would fund its offer with “an undisclosed mix of cash, yet to be raised by IMIC, and new IMIC shares,” Afferro said.