Afferro Mining Inc. - Update on discussions with potential
strategic partners
/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES./
LONDON, UK, Feb. 7, 2013 /CNW/ - Afferro Mining Inc.
("Afferro" or the "Company", TSX-V & AIM: AFF) wishes to
provide an update on the status of on-going negotiations regarding
a potential offer for the entire issued and to be issued share
capital of the Company or the option to form a strategic
partnership to further develop the Nkout iron ore project.
Talks with International Mining and
Infrastructure Corporation plc. as well as those with potential
strategic partners are progressing. Negotiations with Jindal Steel and Power Limited ("Jindal") have
been terminated on the grounds that the board of directors of
Afferro firmly believes that Jindal's indicative offer
fundamentally undervalued the Company's high quality, strategically
located portfolio of iron ore projects in Cameroon and its strong balance sheet, with
approximately US$90m cash in treasury
as at 18 December 2012.
Whilst the Company has received approaches from
a number of interested parties, there can be no certainty that a
formal offer will be forthcoming.
Shareholders are not presently advised or
required to take any action. Further updates will be made as
appropriate.
About Afferro Mining Inc.
Afferro is an established exploration and
development company listed on the TSX-V (AFF) and AIM (AFF).
Afferro's portfolio includes the 100% owned Nkout, Ntem and
Akonolinga iron ore projects. It also holds a 70% interest in
the Ngoa project, an exploration target bordering Nkout.
Nkout comprises a National Instrument 43-101 ("NI 43-101")
compliant Indicated Mineral Resource Estimate of 1.19Bt at 32.9% Fe
and an Inferred Mineral Resource Estimate of 1.33Bt at 30.3%
Fe.
Qualified Person
Howard Baker
(MAusIMM(CP)) has 18 years' experience in the mining industry and
10 years' experience in the exploration, definition and mining of
iron ore mineral resources. Mr Baker is a full-time employee
of SRK Consulting (UK) Ltd., an independent consultancy, and has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration, and to the
type of activity which he is undertaking to qualify as a Qualified
Person in accordance with NI 43-101 and a Competent Person as
defined in the June 2009 Edition of
the AIM Note for Mining and Oil & Gas Companies.
Howard Baker consents to the
inclusion in the announcement of the matters based on their
information in the form and context in which it appears and
confirms that this information is accurate and not false or
misleading.
Forward-looking Statements
This announcement includes certain
forward-looking statements. All statements, other than statements
of historical fact, included herein are forward-looking statements
that involve various known and unknown risks and uncertainties as
well as other factors. Such forward looking statements are subject
to a number of risks and uncertainties that may cause actual
results or events to differ materially from current expectations,
including delays in obtaining or failure to obtain required
regulatory approvals. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements.
Information about the risks and uncertainties of
the Company's business is provided in its disclosure materials,
including its Annual Information Form and its MD&A for the 12
months ended 31 December 2011,
available under the Company's profile on SEDAR at
www.sedar.com. Factors that could cause actual results or
events to differ materially from current expectations include but
are not limited to: exploration risks, the grade and recovery
of ore which is mined varying from estimates; estimates of future
production, mine development costs, timing of commencement of
operations; changes in exchange rates; access to capital;
fluctuations in commodity prices; and adverse political and
economic developments in the countries in which we or our
investments operate. Although the Company has attempted to
identify important factors that could cause actions, events or
results to differ materially from those described in forward
looking information, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward looking information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. The forward-looking information
contained herein, speaks only as of the date hereof (unless stated
otherwise) and, except as may be required by applicable law,
Afferro disclaims any obligation to update or modify such
forward-looking statements, either as a result of new information,
future events or for any other reason.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy of this release.
SOURCE Afferro Mining Inc.
