Wrap Text
Placing to raise approximately £374,453 gross
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
25 July 2016
Ferrum Crescent Limited
(“Ferrum Crescent”, the “Company” or the “Group”)(ASX: FCR, AIM: FCR, JSE: FCR)
Placing to raise approximately £374,453 gross
Ferrum Crescent, the ASX, AIM and JSE quoted metals project developer,
announces that it has conditionally raised, in aggregate, £374,453 before expenses
through a placement, via Beaufort Securities Limited (“Beaufort”), as agent of the
Company, of 187,226,485 new ordinary shares of no par value each in the capital of
the Company (the “Placing Shares”) at a price of 0.20 pence per new ordinary
share (the “Placing”). The Placing was oversubscribed.
The Placing Shares will represent, in aggregate, approximately 12.74 per cent. of the
Company’s enlarged issued share capital. The Placing is conditional on admission of
the Placing Shares to trading on AIM (“Admission”).
As part of the Placing, each investor was offered, subject to shareholder approval in
accordance with the ASX Listing Rules, options on the basis of one option for every
share subscribed pursuant to the Placing. Each option will entitle the holder to
subscribe for a further new ordinary share at a price of 0.30 pence per share for an
exercise period of two years following the date of Admission (the “Options”). In
addition, the Company has agreed to grant a further 18,722,649 options to Beaufort
on the same terms (the “Broker Options”). The Company does not currently have
sufficient shareholder authority to grant all of the 187,226,485 Options and
18,722,649 Broker Options unconditionally. Accordingly, the Company intends
shortly to issue a notice to shareholders to convene a general meeting of the
Company, at which, inter alia, a resolution(s) will be put to shareholders to approve
the grant of 187,226,485 Options to the subscribers of the Placing Shares and
18,722,649 Broker Options to Beaufort.
Application will be made for quotation of the Placing Shares on the Australian
Securities Exchange and the JSE Limited, and to the London Stock Exchange plc for
Admission. It is expected that Admission of the Placing Shares will become effective
and that dealings in the Placing Shares will commence on AIM at 8.00 a.m. on 29
July 2016. The Placing Shares will be fully paid and will rank pari passu in all
respects with the Company’s existing ordinary shares. Following Admission, the
total issued ordinary share capital of the Company will comprise 1,470,018,368
ordinary shares.
Use of Proceeds
The Company intends to use the net proceeds from the Placing for the Group’s
general working capital purposes, including, subject to the exercise of the
Company’s option over GoldQuest Iberica, S.L. (“GoldQuest”) in due course, a
planned structured work programme across GoldQuest’s Toral and Lago lead-zinc
exploration projects in the provinces of León and Garcia (the “Iberian Projects”),
with the objective of establishing a maiden JORC Code compliant resource estimate
at the Iberian Projects, the rapid establishment of metallurgical characteristics and a
viable metals separation and processing profile.
Justin Tooth, Executive Chairman of Ferrum Crescent, today commented:
“The continued valuable support and strong interest shown in the Group’s activities
from investors is most pleasing. These additional funds will serve to augment and
strengthen the Group’s working capital position as we seek to progress our flagship
Moonlight project in South Africa and, further to the recent extension, exercise in due
course our option over GoldQuest with a view to swiftly undertaking a structured
work programme to advance its attractive, high potential, Iberian Projects.”
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Company Secretary
T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative)
T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance
T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh
T (direct): +27 11 459 5037
This announcement contains inside information.
Notes to Editors:
Further Information on GoldQuest and the Iberian Projects
GoldQuest is a private company incorporated in Spain which owns 100 per cent. of both the Toral
Project and the Lago Project in northern Spain, each having high prospectivity for lead and zinc.
Principal Terms of Ferrum Crescent's Option
- Option to potentially acquire 100 per cent. of GoldQuest. GoldQuest owns 100 per cent. of two
lead-zinc exploration projects in the provinces of León and Galicia, in historic Spanish mining
areas.
- Exclusive option is valid until 31 August 2016. If exercised, Ferrum Crescent, will be required to:
o pay up to approximately £320,000 in cash consideration (calculated as a fixed amount of
£250,000 plus a further cash payment comprising the lesser of 50 per cent. of GoldQuest's current
liabilities and £92,500, minus the option consideration); and
o issue, credited as fully paid, 100 million new ordinary shares in the capital of Ferrum Crescent.
Toral Project
The Toral Project has been extensively explored historically by its previous owners Portex Minerals Inc.
and Lundin Mining S.L. and the 2,024ha of mineral rights contains extensive high grade zinc
mineralisation. Located in north-west Spain, approximately 400km north-west of Madrid, the project's
licence area hosts excellent road, rail and power infrastructure and is situated in a known historic mining
jurisdiction. The asset also has a pre-existing NI 43-101 resource estimate reported by Micon
International Co. Limited on 30 April 2012.
Lago Project
The Lago Project is located approximately 54km to the north-east of the Toral Project. Historical
investigations completed by or on behalf of the Spanish mining firm, Exploracion Minera International
Espana S.A. ("EXMINESA"), between 1985 and 1990, indicated that mineralisation at the Lago
Project may be similar to that encountered at the Toral Project with vertical, lenticular bodies
(probably more than one) approximately 800m long by 300m wide.
Further Information on the Moonlight Project, South Africa
Ferrum Crescent's principal project is the Moonlight Iron Project located in Limpopo Province in the
north of South Africa. The Moonlight Deposit (upon which the Project is based) is a magnetite deposit
located on the Moonlight, Gouda Fontein and Julietta farms and is the main operational focus for the
Company. Iscor Limited ("Iscor"), which explored the project in the 1980s and '90s, reported
mineralisation capable of producing a concentrate grading at 68.7% iron. At that time, Iscor concluded
that the deposit, which was described as being comparable to the world's best, was easily mineable
due to its low waste-to-ore ratio. The beneficiation attributes of Moonlight ore are extremely
impressive, with low-intensity magnetic separation considered suitable for optimum concentration.
Metallurgical tests on Moonlight material, undertaken since then by Ferrum Crescent, suggest that
Iscor's historical results are conservative, that good metal recoveries can be achieved, and that the
resulting concentrates have a high iron content and only negligible impurities, at grind sizes
considered to be industry standard (P80 of 75 - 125 microns).
Key features of the Moonlight Project to date are:
- JORC (2012) compliant Mineral Resource;
- Historical drilling, drilling by the Group, geological modelling and a high density geophysical
survey conducted by the Company in 2012 confirm tonnage upside potential;
- 30 year Mining Right granted;
- Environmental licence (EIA) in place for the Moonlight mining area (approved 4 April 2013);
- Metallurgical test work indicates the potential for high quality concentrate and/or pellets with in
excess of 69% iron content and low deleterious elements (DR grade pellets for use in direct
reduction iron/electric arc steel-making processes);
- The quality of product that can potentially be produced at Moonlight is a clear differentiator
against its industry peers, as is the access to infrastructure (port, power and rail);
- Duferco offtake partner (4.5 Mtpa plus first right on a further 1.5 Mtpa if not sold domestically).
South Africa currently has a growing demand for high grade iron concentrate and/or pellets for its
steel industry;
- Independent valuation by The Mineral Corporation completed in June 2014 - this valuation served
as the basis for the BVI (Ovation Capital) farm-in transaction;
- BEE compliant South African investment company (BVI) will provide a completed BFS to the
Group by 2018/19 at no expense to the Group in return for a 39-43% equity position in the
Moonlight Project;
- Located near Kumba railhead at Thabazimbi (Kumba operation depleting in grade), Limpopo
Province, northern South Africa;
- New Eskom power plant (4,800MW) commissioning first 800MW module;
- Richards Bay port expansion for potential export of future iron ore products; and
- Local community, Ga-Seleka, has an effective 3% carried interest in the Moonlight Project.
Date: 25/07/2016 05:25:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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