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Quarterly activities and cash flow report for period ended 30 September 2014
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")
Quarterly Activities and Cashflow Report For the period ended 30 September
2014
Ferrum, the ASX, AIM and JSE quoted iron ore developer in northern South Africa,
today announces its quarterly results for the three month period ending 30 September
2014.
HIGHLIGHTS:
Moonlight Iron Ore Project:
- BFS work program planning continues
- Advanced stage BEE partner process commenced
- Consultation with study managers and engineering partners
o Efficiencies identified for key beneficiation plant costings
Corporate:
- Cash as at 30 September 2014 was approximately AU$245,000
- Review of independent valuation of the Moonlight Iron Ore Project (“Moonlight”)
by negotiation partners
- BEE negotiations commenced for next round of partnership
Post Period:
- Rights issue to raise up to $2.03m announced
Commenting today Tom Revy, Managing Director, said: "Preparation for the
recommencement of the Moonlight Bankable Feasibility Study continued during the
September Quarter 2014. The Moonlight Iron Ore Project will produce and deliver a
premium iron ore product to customers and will be of considerable benefit to Ferrum
shareholders, the South African local communities and municipalities as well as to the
governments of South Africa and Limpopo and their agencies. South Africa recognises
the value that Moonlight will add on a national, provincial, municipal and local level. Our
priority remains securing the correct cornerstone investor as we move the Moonlight
BFS forward”.
Overview
Ferrum Crescent continued its dual strategy of preparing the work-flows that shall
complete key components of the Moonlight BFS, while ensuring the Company remains
on a solid corporate footing. Operational elements within the quarter included
consultation sessions with both study managers and engineering partners to agree
technical goals for metallurgical and plant design BFS components. The results of
these sessions were constructive with efficiencies identified for the generation of final,
signed off, costings for the beneficiation plant.
Discussions have also commenced to secure the next stage of Black Economic
Empowerment partnerships in Ferrum Crescent as Moonlight moves forward. Post-
period Ferrum has secured funds, through an underwritten Rights Issue, to progress
work on the Moonlight BFS while continuing negotiations with potential investment
partners in Moonlight. The Company remains highly efficient and is on a sound
financial footing to secure the correct partners to advance the development of a high-
grade iron ore hub located in an “infrastructure-rich” global region.
Exploration Interests
As at 30 September 2014, the Company held an interest in the following mining Rights
(“Rights”):
Project Location Right Right Status Holder Percentage
Number Interest
Moonlight Limpopo 30/5/1/2/2/20 Mining Right Ferrum Iron 97%
Province, 1 MR Granted Ore (Pty) Ltd
South Africa
Moonlight Limpopo 30/5/1/2/2/20 Prospecting Ferrum Iron 97%
Province, 1 MR Right Ore (Pty) Ltd
South Africa Application
No licences were acquired or disposed of during the Quarter.
Post Period- Rights Issue
On 9 October 2014, Ferrum Crescent announced that it was undertaking a non-
renounceable pro rata rights issue of 2 New Shares for every 3 existing shares in the
Company (Shares) held on the Record Date (see further details below), to raise up to
approximately A$2,029,881 (before costs, and subject to rounding and currency
exchange rates)(“Rights Issue”).
The Rights Issue is partially underwritten by Patersons Securities Limited to the extent
of the first A$860,000, thus ensuring the Company will raise at least that amount from
the Rights Issue (before costs and subject to currency exchange rates).
Funds raised by the Rights Issue will be used to complete key components of the
Moonlight BFS underway at Moonlight in Limpopo Province in northern South Africa
and for corporate overheads.
The Directors of the Company consider it to be the correct time to move the Moonlight
BFS process significantly forward due to the infrastructure upgrade programmes
currently underway in and in support of Limpopo. The Moonlight BFS objectives are to
assess the economic viability of extracting iron ore from a low stripping ratio, open pit
mine to then be slurried to an existing Transnet rail terminal, where a high-grade pellet
can be produced and shipped. Following completed Moonlight BFS metallurgical work,
it is expected that Moonlight will produce a pellet product with a 68-70% grade.
Moonlight is favourably positioned in comparison with its peers due to the price
premium high grade iron ore can demand.
The Company will deploy funds from the Rights Issue to complete final costings for
most of the major mining and processing elements. Completion of this phase of work
will allow for final negotiations and planning with major infrastructure partners (Transnet
Rail, Transnet Port and Eskom) and local communities. The Company (via its local
subsidiaries) holds a 30 year mining licence and environmental approvals for mining
Moonlight.
For more information, please visit www.ferrumcrescent.com or contact:
Australia and Company enquiries:
Ferrum Crescent Limited
Ed Nealon T: +61 8 9367 5681
Chairman
Tom Revy T: +61 8 9367 5681
Managing Director
UK enquiries
Pareto Securities Ltd (Broker)
Guy Wilkes T: +44 (0) 20 7786 4370
RFC Ambrian Limited (Nominated Adviser)
James Biddle/Andrew Thompson
T: +44 (0) 20 3440 6800
Ferrum Crescent Limited
Laurence Read (UK representative)
T: +44 7557672432
South Africa enquiries:
Sasfin Capital
Sharon Owens T: +27 11 809 7500
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
Ferrum Crescent Limited
ABN Quarter ended (“current quarter”)
58 097 532 137 30 September 2014
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities (3 months)
$A’000 $A’000
1.1 Receipts from product sales and related
debtors
1.2 Payments for (a) exploration & evaluation (176) (176)
(b) development
(c) production
(d) administration (279) (279)
1.3 Dividends received
1.4 Interest and other items of a similar nature
received 1 1
1.5 Interest and other costs of finance paid
1.6 R&D recoupment tax
1.7 Other – net income on restricted cash
investments
Net Operating Cash Flows (454) (454)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (restricted cash investments) (30) (30)
Net investing cash flows (30) (30)
1.13 Total operating and investing cash flows
(carried forward) (484) (484)
1.13 Total operating and investing cash flows
(brought forward) (484) (484)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, options,
etc.
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19.1 Other
1.19.2 Other - First Tranche proceeds from
Anvar Asian Investment
1.19.3 Other – share issue costs (10) (10)
(10) (10)
Net financing cash flows
Net increase (decrease) in cash held (494) (494)
1.20 Cash at beginning of quarter/year to date 738 738
1.21 Exchange rate adjustments to item 1.20 1 1
245 245
1.22 Cash at end of quarter
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 89
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in
which the reporting entity has an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A’000 $A’000
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation
300
4.2 Development
4.3 Production
4.4 Administration 200
Total 500
Reconciliation of cash
Reconciliation of cash at the end of the quarter Current quarter Previous quarter
(as shown in the consolidated statement of cash $A’000 $A’000
flows) to the related items in the accounts is as
follows.
5.1 Cash on hand and at bank 209 574
36 164
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
245 738
Total: cash at end of quarter (item 1.22)
Changes in interests in mining tenements
Tenement reference Nature of interest Interest at Interest
(note (2)) beginning at end
of quarter of
quarter
6.1 Interests in mining
tenements and
petroleum tenements
relinquished, reduced
or lapsed
6.2 Interests in mining
tenements and
petroleum tenements
acquired or increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and
dates.
Total number Number quoted Issue price per Amount paid up
security (see per security (see
note 3) (cents) note 3) (cents)
7.1 Preference
+securities
(description)
7.2 Changes
during quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs,
redemptions
7.3 +Ordinary 380,602,777 378,302,777 Various Fully Paid
securities
7.4 Changes
during quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs
7.5 +Convertible
debt
securities
(description)
7.6 Changes
during quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description 400,000 - $0.10 14 December 2015
and conversion 500,000 - $0.03 21 November 2016
factor) 2,500,000 - $0.08 19 February 2017
7.8 Issued during
quarter
7.9 Exercised
during quarter
7.10 Expired /
cancelled
during quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 5).
2 This statement does /does not* (delete one) give a true and fair view of the
matters disclosed.
Sign here: ……………………………….………… Date: 28 October 2014
(Company secretary)
Print name: Robert Hair
Notes
1 The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash
position. An entity wanting to disclose additional information is encouraged to
do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this
report.
5 Accounting Standards ASX will accept, for example, the use of International
Financial Reporting Standards for foreign entities. If the standards used do
not address a topic, the Australian standard on that topic (if any) must be
complied with.
28 October 2014
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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