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Disposal of Moonlight Iron Ore Project, South Africa
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
3 July 2017
Ferrum Crescent Limited
(“FCR”, the “Company” or the “Group”) (ASX, AIM, JSE: FCR)
Disposal of Moonlight Iron Ore Project, South Africa
FCR, the European lead-zinc explorer, announces that it has entered into a legally
binding agreement for the sale of Batavia Ltd (“Batavia”), its wholly-owned Mauritian
subsidiary which is the investment holding company for all the Group’s South African
assets, including the Moonlight iron ore project in Limpopo Province, northern South
Africa (the “Moonlight Project”), to NPSPL Africa Holdings Limited and its BEE partner,
Ngwenya Capital (Pty) Limited (together, the “Purchasers”).
Further to the Company’s announcement of 27 April 2017 regarding, inter alia, the
Board’s decision to seek to terminate all activities and expenditures in South Africa due
to the depressed iron ore market and the project’s high capital cost and infrastructure
requirements, the Company has acted swiftly to identify and secure a suitable
purchaser for its South African interests.
For nominal consideration of one thousand Australian dollars, the Purchasers have
acquired Batavia and thereby assumed responsibility for all of the Company’s iron ore
assets, its South African subsidiaries and all of the associated corporate, audit, fiscal
and environmental responsibilities and costs. The sale is effective immediately and the
Company has given customary undertakings, representations and warranties for an
agreement of this nature.
This disposal of Batavia was considered to be a more cost effective and expeditious
means of withdrawing from the Moonlight Project, rather than pursuing the alternative
of an orderly winding-up of the Group’s Mauritian and South African subsidiaries and
relinquishment of the Moonlight Mining Right and prospecting right application to the
South African Department of Mineral Resources with the concomitant requisite actions,
including environmental rehabilitation requirements.
Accordingly, today’s disposal effectively ends the group’s exposure to all of the costs
and commitments associated with maintaining the Moonlight Project in good standing
and enables the Company to focus its resources on its portfolio of European lead-zinc
exploration assets.
Commenting today, Justin Tooth, Executive Chairman of FCR, said:
“Today’s agreement brings to an end our involvement with the Moonlight Project at a
time when developing a magnetite iron ore asset of this scale and nature in South
Africa has become extremely challenging for foreign companies.
“We shall now continue to maximise and focus our efforts and capital deployment on
the development of our Spanish lead-zinc assets where we recently intersected our
first near-surface mineralisation. I look forward to updating the market with our initial
exploration results in due course.”
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and 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)
Melanie De Nysschen
T (direct): +27 11 459 5052
The information contained within this announcement is deemed by the Company to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Date: 03/07/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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