Afferro Mining Inc. - Signing of MOU with POSCO for Development of Projects in Cameroon
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LONDON, Feb. 25, 2013 /CNW/ - Afferro Mining Inc. ("Afferro" or the "Company"), the exploration and development company focused on iron ore in Cameroon, is pleased to announce that it has signed a memorandum of understanding ("MOU") with POSCO Africa (Pty) Ltd. ("POSCO Africa"). Both parties have agreed to endeavor and cooperate in order to negotiate a definitive agreement in relation to Afferro's Nkout, Ntem and Akonolinga iron ore projects in Cameroon.
- POSCO Africa signs MOU with the intention of making a project level investment
- POSCO Africa to cooperate to facilitate infrastructure and project development funding
- Both parties working towards signing a definitive agreement during Q2 2013
POSCO Africa (Pty) Ltd is a 100% subsidiary of POSCO Co. Ltd. This MOU is non-binding and non-exclusive.
Luis da Silva, Chief Executive Officer of Afferro, commented:
"The MOU with POSCO Africa is a potentially transformational step in the continuing development of our high quality and strategically located portfolio of iron ore assets in Cameroon. The MOU is an endorsement of the work we have undertaken to de-risk our asset base and establish a platform from which to enter the next stage of our development.
POSCO has extensive expertise in developing iron ore projects and related infrastructure, and an existing presence in Africa, making them an ideal partner to work with us to unlock long term value from our project portfolio.
We are pleased to have reached a stage of negotiations with a potential partner with the credibility and capabilities of POSCO Africa, which we firmly believe reflects the potential of our assets."
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.
POSCO is an integrated steel producer in Korea. It produced approximately 37.3 million tons of crude steel during the year ended December 31, 2011, a substantial portion of which was produced at Pohang Works and Gwangyang Works. POSCO's product portfolio consists of hot rolled steels, steel plates, wire rods, cold rolled steels, galvanized steels, electrical galvanized steels, electrical steels, stainless steels and titanium products, which are used in ships, automobiles, consumer electronics, machine structural uses and general structures.
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.
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.For further information:
Afferro Mining Inc.
Luis da Silva / Jeremy Cave
Tel: +44 (0) 20 7010 7680
Nominated Adviser: Neil Elliot
Corporate Broker: Chris Sim
Tel: +44 (0) 20 7597 5970
RBC Capital Markets
Joint Broker: Martin Eales / Richard Hughes
Tel: +44 (0) 20 7653 4000
Pelham Bell Pottinger
Daniel Thöle / James MacFarlane
Tel: +44 (0) 20 7861 3232