IMIC's Cameroonian subsidiary's bank accounts unfrozen

IMIC's subsidiary has filed an administrative appeal against the tax demand International Mining & Infrastructure Corporation (LON:IMIC) and said its Caminex subsidiary has had its local bank accounts in Cameroon unfrozen.

Caminex, which serves as IMIC's principal local operating company in the development of the group's iron ore assets in Cameroon, reopened its headquarters on Tuesday, having filed an administrative appeal against the demand received from the Cameroonian Tax Authorities for payment of tax.

Professional tax and legal advisers are working on the dispute, which could see IMIC stung for around US$2.6mln.

The advisers believe that the tax assessment has been incorrectly issued and that Caminex has sound and robust legal and tax arguments to put forward during the discussions with the tax authorities.

Details of the tax dispute were originally revealed in IMIC's update released on 8 October.

In separate announcements, IMIC announced changes to the interest rates and final redemption dates of two of its bond issues.

The US$30mln of bonds due for redemption in 2016 will now be redeemed in 2021; the coupon has been reduced to 5% from 8.75%.

The US$50mln of bonds due for redemption in 2014 will now be redeemed in 2020; the coupon has been reduced to 5% from 8.125%.