Shares in Afferro Mining rose as high as 107 GBp in trade on Monday after it confirmed it has received an initial approach from International Mining and Infrastructure Corporation.

While the iron ore exploration and development firm made sure to stress that the approach is at a very early stage and that there was no certainty of a formal offer, it said, “IMIC would be prepared to make an offer, subject to completion of satisfactory due diligence and certain other conditions, for the entire issued and to be issued share capital of Afferro at between 115 and 140 pence per Afferro share.”

According to a press release issued on Monday, the miner said offer would be paid by an undisclosed mix of cash, yet to be raised by IMIC, and new IMIC shares.

Afferro added, however, that, it continues to have discussions with other “interested parties” regarding a possible offer for the miner.

And, it adds, it “is currently under exclusivity obligations with one other party which preclude Afferro from engaging in discussions with IMIC until January 13, 2013.”

As at 13h50 GMT, shares in the company were trading at 101.38 pence, 11.40% higher than its previous close.

According to Bloomberg, the intraday rise, which at one point hit as high as 17%, is the biggest the stock has seen since December 6, while the volume of stock traded was 70 percent above the daily three-month average.

Shareholders in the stock are not presently advised or required to take any action, the miner said, adding, “Afferro does not intend commenting further on the approach or other discussions unless a definitive agreement is reached or unless otherwise required by law or applicable regulation.”

Shares in IMIC were trading 2.6% lower at 28.25 GBp on the news.