African Aura Inc Mining Explorations Operations in Cameroon, Africa

Yaounde, Cameroon Africa(Cameroon News) -

Afferro Mining is gearing up to put together yet another $24m through institutional placing.

Afferro Mining (CVE:AUR) (AIM:AFF) announced on Tuesday that it plans to get together £15.5 million (US$24 million) by means of an institutional placing.

Afferro, which owns stakes in prestigious iron ore projects in Cameroon and Liberia, in planning to dispose 17.2 million common shares to institutional and other investors at 90 pence per share.

The placing price is the same as a 9.09% discount to the closing mid-market price on the London Stock Exchange, as of yesterday, it said. The placing shares would point at an increase of 19.99% of the current issued share capital of the company.

Afferro said it has sent in request for admitting the placing shares to trade on the AIM market of the London Stock Exchange, and that the trading is expected to commence on July 22. The company said it also intends to apply for listing on the TSX Venture Exchange. The placing would be based on regulatory approvals.

The company said it proposes to employ the profits to close a drilling program, finish a scoping study and flag off a first level assessment study for the Nkout project in Cameroon. In tandem with that Afferro is also looking at deploying the new funds to manage investments with respect to the joint venture Putu project in Liberia, which also comprises of a resource definition drilling program and an already completed prefeasibility study.

The company will also employ the profits from the placement for target determination in Cameroon, as well as manipulate corporate costs and general working capital. Evolution Securities and RBC Capital Markets are functioning as joint bookrunners, while GMP Securities Europe is taking on the role of co-lead manager with respect to the offering.