FERRUM CRESCENT LIMITED - Anvar Asian investment due diligence concluded

Anvar Asian investment due diligence concluded

FERRUM CRESCENT LIMITED

(Incorporated and registered in Australia and registered as an

external company in the Republic of South Africa)

(Registration number A.C.N. 097 532 137)

(External company registration number 2011/116305/10)

Share code on the ASX: FCR

Share code on AIM: FCR

Share code on the JSE: FCR      ISIN: AU000000FCR2

("Ferrum Crescent", the "Company" or the "Group")





ANVWAR ASIAN INVESTMENT DUE DILIGENCE CONCLUDED





HIGHLIGHTS

  -   The AAI internal due diligence process is now complete

      and the Company has been informed all key conditions have

      been met or waived

  -   Structuring and shareholders’ agreements now underway

      between Company and AAI

  -   Following completion of agreements first payment of US$1m

      due to be made by 15 January 2014

  -   On 23 September 2013, Ferrum Crescent announced signing

      of conditional, legally binding letter of intent (“LOI”)

      with Anvwar Asian Investment (“AAI”) to progress

      Moonlight BFS Development

  -   Under the LOI, AAI will pay US$10m to acquire a 35%

      shareholding in Ferrum Iron Ore (Pty) Ltd, which holds

      the mining right over the three farms that contain the

      Moonlight Deposit, and US$3.5 additional funds to

      contribute to BFS costs









Ferrum Crescent, the ASX, AIM and JSE quoted iron ore

developer, today announces that the internal due diligence

undertaken by Omani based Anvwar Asian Investment has now

concluded for the acquisition of a 35% stake in the Moonlight

Iron Ore Project.   The conditions precedent to the LOI have

been met or waived, and the parties will now finalise the

structure of the transaction and conclude the relevant

shareholders’ agreement. This is due for completion during

January 2014, when the first payment of US$1m will be made,

the US$9m remainder of the purchase price being payable by the

end of February 2014.





Ferrum Crescent will use the proceeds from the transaction,

together with a further US$3.5 million to be contributed by

AAI towards costs in a staged manner, for the completion of

the Company’s Bankable Feasibility Study (“BFS”) for the

Moonlight Iron Ore Project.





Commenting today Ed Nealon, Chairman, of Ferrum Crescent said:

“The conclusion of the due diligence by AAI allows both groups

to complete structuring agreements and secure funds that will

allow the Moonlight BFS to be concluded. Working with AAI we

shall look to progress the BFS in early 2014 and move towards

our goal of creating a new high-grade iron-ore product source

located near infrastructure in Northern South Africa.”





Mr Anvwar Al Balushi, who is Chairman of AAI, will travel to

South Africa in early 2014 to sign the shareholders’

agreement.   Mr Al Balushi stated: “The Moonlight Project is in

some ways a different investment from ones that Anvwar Asian

Investment has made in the past.   Through this transaction and

our relationship with Ferrum Crescent, however, we know there

will be significant benefits to the owners, South Africans and

also importantly for us to Omanis, as our strategic plans are

carried out.”

For more information, please visit www.ferrumcrescent.com or

contact:







Australia and Company                UK enquiries:

enquiries:

Ferrum Crescent Limited              Ocean Equities Limited

Ed Nealon                            (Broker)

T: +61 8 93809653                    Guy Wilkes        

Executive Chairman                   T: +44 (0) 207786 4370





Bob Hair                             RFC Ambrian Limited

Managing Director                    (Nominated Adviser)

 T: +61 414 926 302                  Sarah Wharry/

                                     Jen Boorer        

                                     T: +44 (0) 203440 6800





                                     Ferrum Crescent Limited

                                     Laurence Read (UK

                                     representative)

                                     T: +44 7557672432





South Africa enquiries:              Sasfin Capital

                                     Leonard Eiser 

                                     T: +27 11 809 7500   



29 November 2013

Johannesburg





Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)   
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