International Mining & Infrastructure (IMIC) has signed a definitive agreement to acquire 100% of issued and to be issued common share capital of Canadian iron ore company Afferro Mining, for $200m.

The latest agreement signed on a recommended basis is pursuant to a Canadian court-approved plan of arrangement, IMIC said.

The acquisition price per Afferro share of £1.20 per share includes £0.80 in cash, along with a two-year convertible loan note with par value of £0.40, carrying simple annual interest of 8%.

IMIC chairman Haresh Kanabar said, "The combination of IMIC and Afferro is a compelling opportunity that brings together Afferro’s iron ore assets with IMIC’s innovative infrastructure, financing and offtake solution."

The proposed acquisition brings together assets of Afferro with IMIC’s access to an infrastructure solution and access to improved financing capability in a bid to develop Afferro’s key Nkout Project.

The transaction will be subject, inter alia, to the approval of IMIC’s shareholders under the reverse takeover requirements of AIM Rules for Companies.