The Cameroon miner estimated 39.1m tonnes of iron ore could be produced at the Ntem mine, after test results last week indicated a high-grade product.
Investment firm IMIC has a self-imposed deadline of 8 May to say if it can secure the $100m (£65.6m) to fund a formal takeover offer for Afferro. Analysts have questioned IMIC’s ability to raise the equity given its £16m market cap and existing debt. However, Afferro chief exec Luis da Silva told City A.M last month that IMIC was said to have already secured the $100m.
“I think the update on the Ntem mine strengthens Afferro’s negotiating position,” said Alison Turner, analyst at Panmure Gordon. “It is a good but small resource.”
IMIC and Afferro Mining were unavailable for comment.