IMIC moving towards sale of assets of Nkout iron project

The British mine operator, International Mining and Infrastructure Corporation (IMIC), has announced the successful conduct of a convertible bond investment transaction in the amount of $ 22 million (FCFA 13 billion).

The operation of a 4-year maturity term was accompanied by an interest rate of 15%.

As a reminder, IMIC took over all the assets of the British junior mining Affero Mining in Caminex, the Cameroonian company which develops Nkout iron project in the southern region of Cameroon.

According to sources, subscribers of this loan will have a choice between a full or part refund and take actions within Caminex at FCFA 10,000 action. In the latter case, IMIC consents indirect transfer of assets equivalent to about 49.5% of the capital of its subsidiary Caminex.

This fundraising operation would interest the Cameroon tax authorities, who recently had to convince IMIC to obtain the payment of a sum of over FCFA 1 billion, representing the tax arising on the sale assets of Affero Mining to IMIC in Caminex in 2013.

The tax adjustment note addressed to IMIC about it in August 7, 2015 was challenged by the mine operator, who then argued out the absence of the provision establishing this tax at the time of the transaction in 2013.

The Cameroonian tax, which stubbornly maintains that the inclusion of this provision in the 2015 Finance Act was only a "clarification" of an existing provision at the time of the transaction between IMIC and Affero Mining in 2013, was then ordered garnishment of accounts for the mine operator.

IMIC will eventually pay the amount claimed by the General Tax Directorate, obtaining the same time a discharge on the attachment of bank accounts of Caminex, its local subsidiary to 100%.

To recap, the Nkout iron deposit is presented as being the most important of Cameroon, to the Mbalam (to the east), the deposit is torn between Cameroon and Congo.

In December 2014, IMIC announced a reassessment of the potential of Nkout deposit to 2.7 billion tonnes of iron resources, with growth of 68% on the DSO (direct exportable ore).