By: OrePulse

Africa Metallic Resources Inc. (AMR) said on November 9 that it has reached three milestones toward reviving the Putu Iron Ore Project in Liberia: a binding agreement with the Liberian government, a definitive share-purchase deal with Russian steelmaker Severstal, and government approval of a change of control over the project in AMR's favor.

The Liberian-owned company said it signed a binding Memorandum of Agreement with the government of Liberia covering the project's revival. Separately, AMR said it executed a definitive Share Purchase Agreement with Severstal, under which the Russian steel producer, which holds an existing interest in the Putu project, is to transfer that stake to AMR. The Liberian government has approved the resulting change of control in AMR's favor, according to the company.

AMR said it is now working with Severstal, the Liberian government and other stakeholders to complete the transaction and move the project toward development. The company said it is also consulting technical partners and financial advisors on planning, engineering and infrastructure work ahead of construction.

Africa Finance Corporation has been named as AMR's strategic financial partner for financing and developing Putu, the company said. AMR described Africa Finance Corporation as a strategic partner of the U.S. International Development Finance Corporation, a U.S. government agency.

AMR said the transaction has also advanced through the U.S. regulatory process, including engagement with the Treasury Department's Office of Foreign Assets Control on sanctions-related requirements. The company gave no further detail on the scope of that engagement or on the specific sanctions questions it is addressing.

AMR, which describes itself as a Liberian-owned company, said it expects the project to draw substantial investment, create jobs, support local businesses and strengthen domestic capacity, while contributing to Liberia's broader economic and infrastructure growth. The company said the combination of the government agreement, the Severstal deal and the regulatory approval reflects what it called the government's commitment to meaningful Liberian participation in ownership of the country's natural resources.

The announcement names five parties with roles in the transaction: AMR as the buyer, the government of Liberia as the approving authority and signatory to the Memorandum of Agreement, Severstal as the seller under the Share Purchase Agreement, Africa Finance Corporation as the financial partner, and the U.S. Treasury's Office of Foreign Assets Control as the regulator reviewing sanctions-related aspects of the deal.

The announcement did not include financial terms of the Share Purchase Agreement, an estimated investment figure, a construction timeline, or details on the project's iron ore reserves.