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LONDON, UK, March 30, 2012 /CNW/ - Afferro Mining Inc. ("Afferro", TSX-V & AIM: AFF) and OAO Severstal ("Severstal", LSE: SVST) today announce that they have agreed to delay the closing of Afferro's sale of its 38.5 percent minority interest in Severstal Liberia Iron Ore Ltd. to Lybica Holding B.V. ("Lybica"), an affiliate of Severstal (the "Transaction"), due to ongoing taxation discussions with the Republic of Liberia's Ministry of Finance (the "Ministry").
As disclosed on 28 February 2012, the parties have received correspondence from the Ministry claiming that Lybica should withhold tax at the rate of 15 percent upon payment of the purchase price of the Transaction. After consulting with Liberian tax advisers and legal counsel, neither Severstal nor Afferro believe that such a tax is payable. This advice is consistent with the advice obtained by the parties prior to entering into the Transaction. Representatives of both companies continue to work to resolve this matter in a prompt manner and as a result have amended the share purchase agreement to provide an outside closing date of 4 April 2012.
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 iron ore project and surrounding iron ore targets in Cameroon. At Nkout, Afferro has an NI 43-101 compliant indicated mineral resource estimate of 944Mt at 32.7% Fe and an inferred mineral resource estimate of 1.05Bt at 31.6% Fe. Afferro has a 38.5% interest in Severstal Liberia Iron Ore Ltd. which indirectly owns the Putu iron ore project in Liberia.
About ОАО Severstal
ОАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, the USA, the Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal is listed on MICEX-RTS and the company's GDRs are traded on the LSE. Severstal reported revenue of $13,573 million and EBITDA of $3,263 million in 2010. Severstal's crude steel production in 2011 was 15.3 million tonnes. www.severstal.com
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 or accuracy of this release.
please contact one of the following:
Afferro Mining Inc.
Luis da Silva / Bevan Metcalf /Jeremy Cave
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Nominated Adviser: Neil Elliot
Corporate Broker: Chris Sim
Tel: +44 (0) 20 7071 4300
RBC Capital Markets
Joint Broker: Martin Eales / Richard Hughes
Tel: +44 (0) 20 7653 4000
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
Severstal Investor Relations
T: +7 (495) 926-77-66
Severstal Public Relations
T: +7 (495) 926-77-66