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Afferro Mining Higher after Selling Putu Iron Ore Project for $65M, Futures Considerations

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Afferro Mining Inc. (AFF.V) is holding on to a 5-cent advance at 85 cents a share after announcing a deal to sell its 38.5% stake in the Putu iron ore project in Liberia to an affiliate of ZAO Severstal Resources for US$65 million in cash at closing as well as rights to request a deferred US$50 million payment along with additional compensation if Putu is sold to another company.

closed 9.5% higher in session-shortened London trade Friday morning after releasing new resource estimates for its Nkout iron ore project in Cameroon, increasing the overall mineral resource by 41%.

The increase -- originally announced last month -- was the third resource update for Nkout this year. The mine is now thought to contain an indicated resource of 944 million tons of 32.7% iron and an inferred mineral resource estimate of 1.05 billion tons of 31.6% iron.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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