An aggregate of US$30,562,651 has been received by Liberian Iron Ore (TSE) from Liberian American- Swedish Minerals (LAMCO), a subsidiary of LIO. The decision to transfer the money was made after the recent closing of LAMCO’s iron ore mine in Yekena, Liberia. The amount will be added to LIO’s income for the first quarter of 1990.
The aggregate sum comes from three sources. Under the terms of the concession agreement, $US15,456,989 was declared as an equalizing dividend from LAMCO’s sales of iron ore.
In addition, because LAMCO is now inactive, the LAMCO directors also approved the repayment of the capital obligation of US$12,855,662 to LIO.
The remaining $US2,250,000 represents LIO’s portion of the LAMCO capital in excess of the par value of the LAMCO’s capital stock.
An agreement in principle has been reached allowing the government of Liberia to purchase LIO’s remaining interest in LAMCO for a nominal fee of US$1 and certain other undertakings. Consequently, LIO does not expect to receive any more cash payments from LAMCO.
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