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Strategic Update and Directorate Changes
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
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2
31 March 2016
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX: FCR, AIM: FCR, JSE: FCR)
Strategic Update and Directorate Changes
Highlights:
- Company restructured to focus on generating value from the Group’s principal
iron ore project in northern South Africa and the development of its value-
accretive business model, progressing initially with its option over the Spanish
lead-zinc projects (via the potential acquisition of GoldQuest Iberia S.L.
(“GoldQuest”))
- Justin Tooth assumes the position of Executive Chairman from his previous
non-executive role
- Evan Kirby joins the Board as a non-executive director, bringing significant
metallurgical experience to the Company
- Merlin Marr-Johnson, who has recently acted as geological consultant to the
Company, appointed as adviser to the Board to assist primarily with the
progression of the potential Spanish lead-zinc projects
- Tom Revy, who as Managing Director was appointed to oversee management
of the Moonlight Project to its current stage, has resigned having substantially
completed his mandate
- Bob Hair has resigned as Company Secretary with Grant Button, an existing
non-executive director, assuming his duties
Ferrum Crescent, the ASX, AIM and JSE quoted metals project developer, today
announces a strategic re-focusing of the Company and the resignations of both Tom
Revy, as a board director and Managing Director, and Bob Hair, Company
Secretary, both with immediate effect. As previously announced, the Board has
taken the strategic decision to seek to enhance shareholder value from the
Company’s Moonlight Project by identifying and securing an investment partner
whilst pursuing an efficient operating model in order to target and progress additional
high-opportunity projects, initially comprising two potential lead-zinc assets in
Spain.
As part of the refocused strategy, Mr Justin Tooth has assumed the role of Executive
Chairman, based in London, with immediate effect. This will significantly reduce
management costs and locate the executive management function in the same
country as the majority of the Group’s principal advisers and shareholder base with
more closely aligned time zones for our project teams in South Africa and Spain.
Dr Evan Kirby joins the board as Non-Executive Director with immediate effect. Dr
Kirby is a metallurgist with over 30 years of international experience in the mining
sector. He has held senior management positions with Impala Platinum, Rand
Mines and Rustenburg Platinum Mines and worked as a director and technical
consultant for a number of mining companies. He is currently a director of Bezant
Resources plc (AIM) and Nyota Minerals Limited (ASX & AIM).
Mining projects in Iberia have recently benefited from new technologies that have led
to improved margins and the potential for historic mines to restart operations. The
Board believes that both of the Spanish assets held by GoldQuest have potentially
robust economics but the key to unlocking maximum value will be in the detail of the
project development plans. Dr Kirby will provide the Company with significant
expertise and insight into metallurgy and development options for, inter alia, the
Spanish lead-zinc assets.
Mr Merlin Marr-Johnson will advise the Board on all aspects of the Spanish projects
on which he has previously worked. Mr Marr-Johnson completed a course at the
University of Granada as part of his geology degree and has undertaken exploration
campaigns in a number of Spanish-speaking countries. He has previously worked for
over 22 years in the minerals industry at Rio Tinto plc, HSBC plc, various mining
juniors and most recently as a resources fund manager at Blakeney Management. In
the event that the Company elects to exercise its option over GoldQuest, Mr Marr-
Johnson will advise, in particular, on the structure of the Spanish project team and
an optimised exploration campaign.
As a seasoned mining project manager, Mr Tom Revy has been instrumental in
overseeing the initial Bankable Feasibility Study (“BFS”) work on the Company’s
Moonlight magnetite Project and secured a farm-in and joint venture agreement with
Business Venture Investments No. 1709 (Proprietary) Limited, a sister company of
Ovation Capital, last year in order to progress the BFS and development work. The
Board would like to thank Tom for his valuable work and contribution in executing the
mandate given to him just over two years ago. Further to the strategic review
process, the Group is being transitioned to achieve optimum efficiency in order to
progress the Moonlight Project with its investment partners, whilst pursuing
additional attractive projects to add to its portfolio including the current option over
GoldQuest and its two Spanish lead-zinc assets, with a view to progressing a rapid
low-cost resource delineation and metallurgical testing campaign. Consequently, Mr
Revy is resigning from the Company with immediate effect to pursue his other
business interests.
Mr Bob Hair, Company Secretary, is also leaving the Company. His duties will be
performed going forward by long-standing Non-Executive Director, Grant Button. Mr
Button has 26 years’ experience both as a Company Secretary and as a Director of
various Australian companies, particularly in the resources sector.
Justin Tooth, Executive Chairman of Ferrum Crescent, today commented:
“The Company is now moving into a new phase as we continue to seek to reduce
costs and create a more streamlined company capable of generating value from both
our existing project and carefully selected additional portfolio assets. I
believe Moonlight can swiftly deliver absolute returns for shareholders; my recent
visit to South Africa, meeting key local stakeholders, has informed that opinion. I
would like to thank Tom for all his hard work over the past two years. He has
successfully steered Moonlight to the stage where it can progress with its major
investment partners. Accordingly, the Board has now decided to refocus the Group
and cut costs to enable Ferrum to create shareholder value from the right assets in
the most efficient manner.
“Our option over GoldQuest affords us the opportunity to take ownership of a
significant and exciting project data set. With the team’s new geological and
metallurgical expertise, we can now efficiently grow viable JORC-defined resources
and establish pathways to future economic production. For my part, I am delighted
to assume the role of Executive Chairman. I have had a long involvement with the
Company as an adviser before joining the Board last year and strongly believe that
the Company has an exciting and promising future as we seek to deliver on the
goals set by the strategic review process. The revised management structure gives
us the right expertise in the right locations and at the right cost.
“As previously announced, the Company has convened a General Meeting of
shareholders for Wednesday 6 April 2016 to, inter alia, request approval for an
increase in it’s ability to issue shares so that we can progress our new strategy. I
encourage any shareholders with questions regarding the General Meeting or indeed
any aspect of the new strategy to contact us on the numbers below.”
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Australia enquiries: UK enquiries:
Ferrum Crescent Limited Ferrum Crescent Limited
Justin Tooth T: +61 8 9474 2995 Laurence Read (UK representative)
Executive Chairman T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Jon Belliss/Elliot Hance
T: +44 (0)20 7382 8300
South Africa enquiries: Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh
T (direct): +27 11 459 5037
Note for ASX disclosure rule purposes:
1. The key terms of Mr Tooth’s agreement to assume the role of Executive Chairman are as follows:
(i) a salary of £75,000 per annum and (ii) contract renewable quarterly.
Additional information on Dr Evan Kirby:
The following additional information is provided in accordance with the AIM Rules for Companies:
Full name and age
Evan Kirby, aged 65.
Current Directorships/Partnerships Past Directorships/Partnerships (last 5 years)
Bezant Resources Plc Luiri Gold Limited
Metallurgical Management Services Pty. Ltd Luiri Gold Mines Limited
Nyota Minerals Limited Kefi Minerals (Ethiopia) Limited (formerly named
Nyota Minerals (UK) Limited Nyota Minerals (Ethiopia) Limited)
Dr Kirby is currently interested in 10,900 ordinary shares of no par value each in the capital of Ferrum
Crescent representing approximately 0.001 per cent. of the Company’s existing issued share capital.
There is no other information that is required to be disclosed pursuant to paragraph (g) of Schedule
Two to the AIM Rules for Companies.
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