The Russians are Coming
Severstal buys assets in Africa
RBC, 23.05.2008, London 13:15:36.
Severstal has reached an agreement on the acquisition of up to 61.5 percent of African Iron Ore Group Ltd. (AIOG) shares, the Russian steel producer said in a press release today. AIOG's subsidiaries have a license for conducting a geological survey at the Putu Range iron ore deposit in Liberia. In addition, Severstal is expected to buy a 6.29-percent stake in Mano River Resources Inc., which holds a controlling stake in AIOG. The Russian company is to pay $37.5m for the stake in AIOG, while the price of the second deal is estimated at GBP 2m (USD 3.9m). Both deals will be implemented through Severstal's Dutch subsidiary Lybica Holding B.V.
According to preliminary estimates, the Putu Range deposit contains at least 500m tonnes of iron ore, while the figure may rise considerably following the geological survey.
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EarlyBird
Labels: Iron Ore, Liberia Natural Resources Liberia Natural Resources, mining agriculture, Putu Range
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