Ferrum Crescent Share News (FCR)

LONDON (Alliance News) - Ferrum Crescent Ltd Thursday said it has decided to push back the completion of the bankable feasibility study for the Moonlight iron ore project in South Africa by three months.

Back in October, Ferrum Crescent entered into a legally binding farm-in and joint venture agreement with Business Venture Investments No. 1709 (Proprietary) Ltd to complete the first phase of the bankable feasibility study for the Moonlight project.

Under the original terms of the deal, Ferrum and BVI had set a deadline to complete the first phase on the bankable feasibility study by early November this year, but this has now been pushed back into early 2017.

"This extension, in order to finalise the appointment of an internationally reputable engineering firm to manage the bankable feasibility study, follows a request from BVI, which remains committed," it said in a statement.

No other changes have been made to the deal apart from the extension to January 12, 2017.

When it originally signed that deal back in November, it was met with mixed feelings. Prior to the deal, Ferrum Crescent had signed a memorandum of understanding for Principle Monarchy Investments (Proprietary) Ltd to assist with the study, but then struck the deal with BVI because it had waited several months for the first payment from Principle Monarchy.

Although investors welcomed the company's move to secure a partner, eyebrows were raised as Ferrum is giving away 43% of the project equity to BVI under the deal compared to the 39% equity it had agreed to give to Principle Monarchy.

Ferrum Crescent shares were untraded on Thursday morning, last trading at 0.167 pence.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.