The purchase will be effected through Severstal’s Dutch subsidiary, Lybica Holding BV.

Through its subsidiaries, AIOG owns the exploration rights for an iron ore deposit in the Putu Range area in Liberia, containing more than 500 million tons of iron ore.

Severstal will pay US$37.5 million (£25.1 million) for the stake. Of this, $22.5 million will be used to purchase a 45 per cent stake from Mano River Resources and other shareholders. Some $15 million will be used for the purchase of additional AIOG shares.

Roman Deniskin, Severstal Resources CEO, commented: “The development of the Putu Range iron ore project is a significant step in the dynamic development of our mining business. From this new region we will supply production to the European and North American markets.”

Following Severstal Resources’ majority interest, AIOG will be re-named Severstal Liberia Iron Ore.