“This is a culmination of months of work and the offer is very complementary to what we are doing in the company,” Luis da Silva, CEO at Afferro, told City A.M.
The offer is subject to IMIC raising $100m (£65.6m) to finance the transaction.
“A Bank of America Merrill Lynch analyst told us that IMIC has already borrowed the $100m,” said da Silva.
If shareholders agree to the offer, they have two options; being paid in IMIC shares, or with a combination of cash and convertible loans.
Analysts yesterday questioned IMIC’s ability to raise the $100m given its £16m market capitalisation and existing debt facility, but said they expected a significantly positive market reaction to the news.
IMIC has also assembled a Chinese consortium to help with financing negotiations and logistics support.
Afferro Mining’s shares closed up 14.1 per cent yesterday at 72.75p.