Cameroon Business News: Afferro Finishes Share Placing
<i>Yaounde, Cameroon Africa(Cameroon News) – </i> <h>Afferro Mining has announced that it has completed its £15.5 million share placing. </h><!–adsensestart–><br><br><br>
The amount that has been collected by way of share placing would be used for stipulated projects at its Nkout project and to finance costs for the Putu project as well as or determining targets in Cameroon. <br><br><br>
Afferro Mining (LON:AFF, CVE:AFF) has formally announced the completion of a share placing, in which it has been able to get together a sum of £15.5 million (US$24.9 million). It stated that it has issued 17.2 million new shares each of which is priced at 90p. <br><br><br>
The cash has been put aside for various sub projects at its Nkout project and to fund costs for the Putu project as well as keying in on targets in Cameroon and for putting together the general working capital and corporate costs, said Afferro. <br><br><br>
Evolution Securities and RBC Capital Markets have been designated as the joint bookrunners in the placing, which is not underwritten, and GMP Securities Europe LLP would be the co-lead manager. <br><br><br>
Afferro says it proposes to employ the net proceeds which is close to £14.9 million (US$23.9 mln) – along with existing cash resources of around US$6 million in the following manner: Close to US$15.6 mln will be employed to ramp up the drilling programme at the Nkout iron project in Cameroon, finish off a scoping study and start off a PEA, said the firm. <br><br><br>
Approximately US$5.2 million will be employed towards investing the firm’s share of costs for the Putu project in Liberia, including a resource definition drilling programme and to speed up a pre-feasibility study. <br><br><br>
Meanwhile US$1.3 million will be used to key in on targets in Cameroon and for corporate costs and working capital, it added. <br><br><br>
In tandem, some of Afferros’s directors took part in the placing, with chairman and director David Netherway, and independent directors Guy Pas and David Evans taking in shares. Netherway subscribed to 33,333 shares increasing his holding of the enlarged share capital to 0.13 percent, Pas subscribed to 100,000 shares owning 5.79 percent, while Evans subscribed to 22,222 shares (0.27 percent). <br><br><br>
Afferro’s portfolio also comprises of the Nkout iron ore project and surrounding iron targets in Cameroon. It also has a 38.5 percent stake in the Putu iron ore project in Liberia. In September last year, the Putu project was handed over a 25 year renewable mineral development deal by the government of Liberia. <br><br><br>
