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Afferro And Severstal Announce Delay To Closing Of Transaction - Quick Facts

Afferro Mining Inc. (AFF.V,AFF.L) and OAO Severstal (SVST.L) announced 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., an affiliate of Severstal, due to ongoing taxation discussions with the Republic of Liberia's Ministry of Finance.

On 28 February 2012, the companies said that they 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.

by RTTNews Staff Writer

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