International Mining & Infrastructure Corporation (LON:IMIC) is already looking at how it will develop the Nkout iron ore deposit in Cameroon as the US$200mln takeover of Afferro Mining, the project’s current owner, nears completion.
It has preliminary off-take deals with the Chinese as well as interest from the People’s Republic to help it develop a mine and build the rail route needed to get ore to the coast.
IMIC investors will vote to formally ratify the acquisition of Afferro, pitched at 80p a share in cash with a two-year convertible loan note worth 40p a share, later this month. Afferro investors have already given their approval.
"We are close to completing the acquisition of Afferro Mining, which will transform IMIC into the owner of high quality iron ore assets in Cameroon, including the Nkout Iron Ore Project,” IMIC chairman Haresh Kanabar said in an update alongside the firm’s full-year results.
“During the coming months we expect to finalise our plans for the development of Nkout whilst also beginning the implementation of the infrastructure solution to transport iron ore from Nkout to the coast.
"We are highly fortunate in already having contractual relationships with some of China's largest companies in the steel supply chain.
“We look forward to working with them to deliver the infrastructure and off-take solution for Nkout whilst also contributing to social and economic development in Cameroon.”
The prelims revealed that like most companies at this formative phase in its development the group posted a loss for the year; in IMIC’s case the shortfall was £6.1mln. More importantly, it had cash of £30mln; putting it in a strong financial position.