Cameroon-focused iron ore explorer Afferro Mining (AFF) has penned a non-binding letter of intent with POSCO, a major South Korean steelmaker that will make a "project level investment" and help arrange funding for infrastructure and project development. The two companies aim to have a formal deal by the end of June.
IC TIP:
Buy
at
78p
The arrangement is a big positive for Afferro, but it lowers the chance of a quick takeover being completed by International Mining & Infrastructure (IMIC) at a hefty premium. That said, IMIC remains in the background with a 6.8 per cent minority shareholding and we expect it to make a statement of intent sooner rather than later.
