Wrap Text
Conditional equity fundraising to raise approximately £1 million (gross) for Toral Lead-Zinc Project, Spain
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
20 March 2018
Ferrum Crescent Limited
(“FCR”, the “Company” or the “Group”) (ASX, AIM, JSE: FCR)
Conditional Equity Fundraising to raise approximately £1 million (gross)
for Toral Lead-Zinc Project, Spain
FCR, the European lead-zinc explorer, is pleased to announce that it has conditionally
raised, in aggregate, approximately £1 million (before expenses), through a proposed
subscription and placing of, in aggregate, 1,739,130,435 new ordinary shares of no
par value each in the capital of the Company (“Ordinary Shares”) at a price of 0.0575
pence per share (the “Issue Price”) (the “Fundraising”). The Fundraising comprises a
placing of 1,608,695,652 new Ordinary Shares via the Company’s joint broker, Turner
Pope Investments (TPI) Limited (“Turner Pope”) as agent of the Company, and a
subscription for a further 130,434,783 new Ordinary Shares, both at the Issue Price,
with certain new and existing investors.
The Fundraising is subject to the requisite shareholder approval and, accordingly, the
issue of the abovementioned new Ordinary Shares is conditional on, inter alia, the
passing of certain resolutions by the Company’s shareholders (the “Resolutions”) at a
duly convened general meeting of the Company (the “General Meeting”), notice of
which will be set out in a notice of meeting to be posted to shareholders shortly.
Use of Proceeds
The Fundraising will provide sufficient financing and general working capital to
progress the resource delineation and commissioning of an initial scoping study in
respect of the Company’s wholly owned Toral lead-zinc project, located in the Province
of Leon, northern Spain.
In particular, the net proceeds will enable FCR to build upon the Toral project’s maiden
JORC (2012) zinc, lead and silver resource estimate of 16Mt@6.9% Zinc equivalent
(including lead credits) and 25 g/t Silver, as announced on 6 February 2018, via the
completion of all key stage 1 work for 2018, including:
• an 8 hole drilling programme East along strike to potentially identify further scale
for the resource;
• an initial scoping study to better assess the Toral project, detailing infrastructure
requirements, potential mining methodologies and marketing options; and
• metallurgical test work on existing core samples to progress the Company’s
understanding of likely, saleable concentrates from a full mining operation.
An updated corporate presentation on the Company’s Toral project and its current
development strategy will be made available on the Company’s website.
Further Details on the Fundraising
The new Ordinary Shares to be issued pursuant to the Fundraising will be fully paid
and will rank pari passu in all respects with the Company’s existing Ordinary Shares.
The Issue Price represents a discount of approximately 36.11 per cent. to yesterday’s
closing mid-market price on AIM of 0.09 pence per Ordinary Share (being the latest
practicable business day prior to the date of this announcement). Application will be
made in due course for quotation of the new Ordinary Shares on the Australian
Securities Exchange and the JSE Limited, and to the London Stock Exchange plc for
admission to trading on AIM with admission expected to occur shortly following the
General Meeting.
The Company will issue a further announcement in due course on posting of the notice
of meeting to provide formal notice of the requisite General Meeting with respect to
seeking shareholder approval for, inter alia, the issue of the new Ordinary Shares
pursuant to the Fundraising, the issue of the placing options and broker options in
respect of the Company’s previous fundraising announced on 2 November 2017 and
replenishment of the Company’s placement capacity under Listing Rule 7.1.
Proposed Change of Name
In order to better reflect the Group’s primary focus on lead-zinc and precious metals
assets within the European region, the Board also proposes that the Company’s name
be changed to ‘Europa Metals Limited’, and an appropriate resolution will be put to
shareholders at the forthcoming General Meeting to secure the requisite shareholder
approval to effect this change.
Commenting today, Myles Campion, Executive Technical Director of FCR, said:
“The injection of significant additional capital will enable the Company to move forward
quickly and build on its recent maiden JORC resource estimate for Toral. I look forward
to commencing our new 2018 field season, reviewing approximately 44,000m of
existing core, conducting a new drill programme and embarking on a cost effective
metallurgical sampling programme, the results of which will feed into a comprehensive
initial scoping study.”
Commenting today, Laurence Read, Executive Director of FCR, said:
“Securing this additional funding will allow the Company to commence a significant
work programme to target additional resources and assess the development options
for Toral to potentially become a fully operational mining concern in the future. The
metallurgical programme, in addition to the data from the additional exploration work,
will form the backbone of our development strategy for Toral as we look to progress
the project towards a Bankable Feasibility Study and continue dialogue with a series
of potential industrial and strategic investment partners.”
For further information on the Company, please visit www.fcrexploration.com or
www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Daniel Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 8 9486 4036
Laurence Read, Executive Director (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker / Guy Peters
T: +44 (0)20 3621 4120
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930
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: 20/03/2018 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
