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Quarterly Activities and Cashflow Report For the period ended 30 June 2017
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 July 2017
Ferrum Crescent Limited
("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 30 June 2017
Highlights:
Toral lead-zinc project, Spain
- Drilling contractor engaged to conduct exploration campaign to test for the presence
of further lead-zinc mineralisation (above historic drilled areas) from surface in a series
of angled holes.
- 9 firm hole locations were planned to intersect near-surface lead-zinc mineralisation
with an average hole length of 155m for a minimum total to be drilled of 1,400m.
- Myles Campion contracted as senior technical consultant to advise the Board on the
geological development of the Company’s asset portfolio.
- Visual identification of lead-zinc associated minerals in the core extracted from all of
the drill holes completed within the reporting period.
Moonlight Iron Ore Project, South Africa
- Sale of the Company’s Mauritian subsidiary, Batavia Ltd ("Batavia"), holding all of 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").
- The sale of Batavia, for nominal consideration, terminated the group’s exposure to the
significant ongoing costs and commitments associated with maintaining the Moonlight
Project.
Corporate
- Capital raising of £225,521 gross through the placement of 322,173,789 new ordinary
shares of no par value each in the capital of the Company at a price of 0.07 pence per
new ordinary share to pursue the Toral lead-zinc project’s exploration programme.
- Cash balance at the end of the quarter: A$504,041
Post Quarter End
Toral lead-zinc project, Spain
- Drilling of 6 holes completed which have all returned visually-identified lead-zinc
intersections from which samples are now being prepared and sent for assay in Spain.
- All drilling conducted was within 200 metres from surface and, due to the drilling
occurring across various elevation levels on a hill, it has been possible to recover core
at various levels within the structure.
- A revised structural thrust model whereby mineralisation is constrained within a series
of thrusts and driven to surface from depth has been established with confirmation from
the intersections encountered at each and every hole drilled.
- With the geological aims of the exploration drill programme having substantially been
met, the programme has been deemed completed by the Board after hole 6 and halted.
- The results from the ongoing assays will be analysed once received, entered into the
revised structural model for Toral and announced accordingly.
- Significant data set and analytics relating to the historic NI43-101 resources report now
recovered from Micon International Ltd (“Micon”).
- Principal objective is now to relate the latest understanding of the thrust model to the
significant amounts of new core and the assay results obtained from the drill
programme.
- The analysis of the new core will facilitate a review of the core from the historic third
party drill campaign with a view to assaying specific previously-untested sections of
the historic core for shallower mineralisation.
- All the assays plus the historic data set will enable the swift development of the next
phase of exploration in order to pursue specific project economic targets, to include
the expansion of the resource.
- The drilling of ‘long-holes’ which is a previously untested approach designed to move
through multiple shale/slate layers will also be assessed. The objective is to
encapsulate the entire mineralised section in each hole by traversing the complete
series of parallel, mineralised planes.
- Internal scoping and comparative studies commenced in July 2017 in order to support
economic development planning towards a Pre-Feasibility Study.
Moonlight Iron Ore Project, South Africa
? Orderly hand-over process of all of the Group's operations and licences associated
with the Moonlight Project underway.
Justin Tooth, Executive Chairman of FCR, today commented:
“The last quarter and subsequent month have seen FCR complete its near-surface, lead-zinc
exploration drill campaign at Toral in Spain and dispose and cease its exposure to its South
Africa assets, including the Moonlight Project.
“The objective for our initial drill programme at Toral was to confirm our new geological model
by establishing the presence of lead-zinc mineralisation near surface, and the existence of
multiple planes of mineralisation rather than just a single mineralised zone at depth as
previously established by prior owners of the asset.
“From visual inspection, the recovered core from every one of the six holes drilled contained
apparently mineralised intersections of varying widths. Accordingly, we decided to call an end
to this initial drilling campaign while our geological team assesses the results and relates them
to the data set received from Micon, and to the core we hold from the historic Lundin drill
programme. The core samples are now being prepared and sent to the ALS Global laboratory
in Seville for assay and analysis.
“It is probable that in light of our drill programme we shall also choose to sample and assay
certain sections of the historic core in order to ratify our findings, as that core was never
assayed for shallow mineralisation because there was a different geological model under
consideration at that time.
“We now look forward to receiving those assay results which are currently anticipated within
the next 6 weeks. We will make a comprehensive announcement of the results from this
campaign as soon as practicable.
“Incorporating all this new data into our geological model at Toral is our current priority so that
we can model the latest drill campaign’s results alongside the significant historic data in order
to enhance our understanding and to focus our exploration activities for the maximum of
benefit. We aim to develop the thrust model at Toral rapidly and continue to build a better
understanding of the project’s resource and economics.
“Lastly, the divestment of our South African assets is leading to a significant reduction in
ongoing costs with our attention now focused on progressing our promising Spanish lead-zinc
projects.”
Exploration Interests
The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for
the quarter ended 30 June 2017:
Project Location Right Number Right Status Holder Percentage
Interest
Toral León Province, 15.199 Investigation GoldQuest 100%
Spain Permit Iberica, S.L.
Lago Galicia Province, Lago II 6.056 Exploration GoldQuest 100%
Spain Permit in Iberica, S.L.
progress
Lago III 6.058 Investigation
Permit in
progress
As at 30 June 2017, the Company has disposed of interests in the following:
Project Location Right Number Right Status Holder Percentage
Interest
Moonlight Limpopo 30/5/1/2/2/201 MR Mining Right Ferrum Iron 97%
Province, Granted Ore (Pty)
South Africa Ltd
Moonlight Limpopo LP30/6/1/1/2/11868PR Prospecting Ferrum Iron 97%
Province, Right Ore (Pty)
South Africa Application Ltd
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.
APPENDIX 5B:
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas 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, 01/05/13, 01/09/16
Name of entity
Ferrum Crescent Limited
ABN Quarter ended (“current quarter”)
58 097 532 137 30 June 2017
Consolidated statement of cash flows Current quarter Year to date (12
$A’000 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation (82) (259)
(b) development
(c) production
(d) staff costs (184) (475)
(e) administration and corporate costs (338) (1,417)
1.3 Dividends received (see note 3)
1.4 Interest received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material)
1.9 Net cash from / (used in) operating (604) (2,151)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (7) (17)
(b) tenements (see item 10)
(c) investments - (928)
(d) other non-current assets
2.2 Proceeds from the disposal of:
(a) property, plant and equipment 2 3
(b) tenements (see item 10)
(c) investments 1 1
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing (4) (941)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 378 3,206
3.2 Proceeds from issue of convertible notes
Consolidated statement of cash flows Current quarter Year to date (12
$A’000 months)
$A’000
3.3 Proceeds from exercise of share options
3.4 Transaction costs related to issues of (38) (283)
shares, convertible notes or options
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and
borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash from / (used in) financing 340 2,923
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 725 743
4.2 Net cash from / (used in) operating (604) (2,151)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities (4) (941)
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 340 2,923
(item 3.10 above)
4.5 Effect of movement in exchange rates on 47 (70)
cash held
4.6 Cash and cash equivalents at end of 504 504
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 504 725
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 504 725
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 82
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities
8.2 Credit standby arrangements
8.3 Other (please specify)
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 180
9.2 Development
9.3 Production
9.4 Staff costs
9.5 Administration and corporate costs 183
9.6 Other (provide details if material)
9.7 Total estimated cash outflows 363
10. Changes in Tenement reference and Nature of Interest Interest
tenements location interest at at end
(items 2.1(b) and beginnin of
2.2(b) above) g of quarter
quarter
10.1 Interests in mining 30/5/1/2/2/201 MR, Relinquished 97% Nil
tenements and Limpopo Province, South
petroleum Africa
tenements lapsed,
relinquished or
LP30/6/1/1/2/11868PR,
reduced Relinquished 97% Nil
Limpopo Province, South
Africa
10.2 Interests in mining
tenements and
petroleum
tenements acquired
or increased
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: Date: 31 July 2017
Print name: Grant Button
Company Secretary
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 that wishes to
disclose additional information is encouraged to do so, in a note or notes included in or attached
to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards,
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. If this quarterly report has been
prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule
19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows
from investing activities, depending on the accounting policy of the entity.
Date: 31/07/2017 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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