Europa Metals Regulatory News (EUZ)

16 March 2017

Ferrum Crescent Limited

("Ferrum Crescent", the "Company" or the "Group") (ASX: FCR, AIM: FCR, JSE: FCR)

Results for the Half-Year Ended 31 December 2016

Ferrum Crescent, the ASX, AIM and JSE quoted metals project developer, today announces its unaudited results for the half-year ended 31 December 2016.

Highlights:

· Placement of new shares, raising AUD 655,034 in July and AUD 927,850 in December

· Completion of the acquisition of GoldQuest Iberica, S.L.

· Commencement of Toral Exploration Project Work programme in northern Spain

Financial Overview

· Net assets as at 31 December 2016 of AUD 2,508,235 (2015: AUD 718,659)

· Total Loss for the half-year of AUD 829,797 (2015: AUD 857,699)

Post Period End

· First exploration results from Toral project, northern Spain

· Termination of the BFS Farm-in Agreement with BVI/Ovation Capital

· Laurence Read appointed as Director, following Klaus Borowski's resignation

A pdf copy of the full half-year accounts is available on the Company's website (www.ferrumcrescent.com) and on the ASX website (www.asx.com.au). A summary of the material financial information (including a statement on going concern) is set out below.

Commenting on the half-year interim results, Justin Tooth, Executive Chairman of Ferrum Crescent said: "This period has seen the Company take an exciting stride forward down the route originally outlined in our strategic update of March 2016 via the acquisition of Goldquest Iberica and its wholly-owned lead-zinc project of Toral in northern Spain. We have swiftly brought a strong international team into action, led by Merlin Marr-Johnson as Project Manager. We were pleased to announce in February the first set of results from the mapping, geochemistry and channel sampling which has confirmed a continuous two kilometre zinc-in-soil anomaly and identified multiple near-surface targets. This has been a great step forward towards our first drill programme, recently announced, fuller details of which will follow shortly. At either end of this half-year, we made two modest placements of new equity in order to fund our activities and we also benefited from the influx of fresh capital thanks to several exercises by options holders to acquire new stock. We continued to work throughout the period on developing the strategic relationships and the optimal pathway for the Moonlight Iron Ore Project in South Africa and we expect to bring a satisfactory conclusion to that activity in due course. We are at present suitably funded for our immediate plans and we remain particularly committed to full transparency with our shareholders and throughout the markets where we are listed.

For further information on the Company, please visit www.ferrumcrescent.com or contact:

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.

The directors accept full responsibility for the information contained in this announcement. The auditor's unqualified review report is available for inspection at the Company's registered office in Australia and at the Company's office at Block B, Regent Hill Office Park, cnr Leslie & Turley Rds, Lonehill, 2062 for 28 business days from the date of release of this announcement.

Review and results of operations

Operating Results

During the half-year 1 July 2016 to 31 December 2016, the Group recorded a net loss after tax of AUD 688,661 (1 July 2015 to 31 December 2015: net loss of AUD 727,485).

Principal activities during the half-year

The principal work streams for the Company during the period were as follows:

1. Determine viable progression routes for the Moonlight assets either through existing structures or new pathways;

2. Group-wide review of operations and costs; and

3. Diversify asset portfolio to secure prospective assets, outside of bulk materials, in low risk geographies

During the six month period covered by this report the Board gave BVI Business Venture Investments No. 1709 (Proprietary) Limited ("BVI") every opportunity to fulfill their commitments under an existing development agreement first announced by the Company on 14 October 2015, entitling the group to earn up to a 43 per cent. equity interest in Ferrum Iron Ore (Pty) Limited ("FIO") through the completion and funding of the Bankable Feasibility Study ("BFS"), which was to be conducted in two phases. The agreement was subsequently extended in January 2016.

The Company also assessed new options for development including certain specific laboratory tests relating to beneficiation.

Subsequent to the period, in early 2017, the BVI agreement was terminated. Further costs reduction initiatives at Moonlight have been advanced and the Company is actively reviewing routes forward for progressing Moonlight.

Due diligence continued over two lead-zinc projects located in Northwest Spain that had been previously subject to exploration by drilling and analysis. Following two extensions made at the Company's request, to allow the seller to meet the conditions of the deal, the option was exercised on 22nd September 2016. The new Ferrum Crescent exploration team, operating out of the UK and Spain, designed and implemented a work programme for the Toral Project. The geological goal is to establish the presence and parameters of mineralisation at surface and then to define the most prospective areas of the structure for the planning of a targeted Phase 1 drill campaign. To this end, soil geochemistry sampling, rock chip sampling, and channel sampling was carried out in conjunction with detailed mapping.

Post-period work was completed at the Toral asset in Spain comprising 575 soil samples, 108 rock chip samples and 23 channel samples in addition to desktop re-analysis of historic data. Using a GIS (geographic information system), Ferrum Crescent has compiled all the various data streams into a three-dimensional model. The proposed 2017 drilling campaign has been based on an increased understanding of the Toral Project and identification of new target zones. Following receipt and interpretation of the positive mapping and sampling results, Ferrum Crescent has drawn up a drill plan comprising thirteen holes off twelve drill platforms, totalling from 1,600 metres to 1,800 metres of diamond drilling. The primary drill targets are zones of co-incident anomalies combining soil geochemistry, rock alteration, visible mineralisation at surface or underground, and structurally favourable zones. Exploration drilling is set to commence in Q2 2017. Drillholes have been designed to intersect multiple zones of mineralisation at depths from 50 metres to 200 metres below surface. In order to facilitate access, all drill platforms are located on existing tracks and roads.

South Africa

Moonlight Iron Ore Project

Ferrum's principal project is the Moonlight Iron Ore Project located in Limpopo Province in the north of South Africa. The Moonlight Deposit (upon which the Moonlight 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 Moonlight 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.

The Mineral Resource estimate is provided in the table below and the Mineral Resource estimation criteria, as required in JORC (2012) and in Section 5.8.2 of the ASX Listing Rules, are available on the ASX Website.

With a cut off grade of 16% Fe, geological losses of 5% and a depth constraint of between 100m and 250m from surface, (depending upon dip and the number of zones present), The Mineral Corporation has determined that there are reasonable prospects for eventual economic extraction, and hence estimate the Mineral Resource as follows:

\* Tonnes are rounded

The Company confirms that it is not aware of any new data that materially affects this resource statement since the first public announcement and that all material assumptions and technical parameters underpinning the resource estimates continue to apply and have not materially changed since first reported.

Competent Person's Statement South Africa:

The information that relates to Exploration Results and Mineral Resources in the report of which this statement is a summary, is based on information compiled by Stewart Nupen, who is registered with the South African Council for Natural Scientific Professionals (Reg. No. 400174/07) and is a member of the Geological Society of South Africa. Mr. Nupen is employed by The Mineral Corporation, which provides technical advisory services to the mining and minerals industry. Mr. Nupen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves' and as defined in the June 2009 Edition of the AIM Note for Mining and Oil and Gas Companies. Mr. Nupen consents to the inclusion in this statement of the matters based on his information in the form and context in which it appears.

Spain

On 30 September 2016 the Company completed the purchase of 100% of the shares of GoldQuest Iberica, S.L. ("GoldQuest"), owning 100% of the Toral and Lago lead-zinc exploration projects located respectively in the provinces of León and Galicia in Spain. 

Toral Project

The wholly owned Toral zinc-lead-silver permit is located near Ponferrada in the west of the province of León, Autonomous Community of Castile and León, Spain approximately 400km northwest of Madrid.

Location of Toral Zinc-Lead-Silver Permit Area

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. 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 (the "NI 43-101 Report"). The NI 43-101 Report estimated that the project has a NI 43-101 compliant Inferred and Indicated foreign resource estimate of 8.71Mt at an economic cut-off grade of 7% Pb + Zn (as set out in the Company's announcement of 10 November 2016).

The work undertaken by the Company has concentrated on the prospective area located vertically above the deep Toral Deposit within the same licence, which is the subject of a foreign estimate for the purpose of the ASX Listing Rules, comprising an NI 43-101 compliant Indicated foreign mineral resource estimate of 4.04 Mt at 11.8 Pb + Zn (%) and Inferred foreign mineral resource estimate of 4.67 Mt at 9.8 Pb+ Zn (%) (details of which are set out in the Company's announcement of 10 November 2016).

Recent work, concluded post-period, has been carried out over areas of zinc-in-soil anomalism along 2 kilometres of strike extension at the Toral Project, with an average width of around 150 metres. A topographic survey, completed with a high specification GPS, enabled accurate positioning of old workings (adits), identifying sub-parallel zones of mineralisation. Underground channel sampling has identified high grade mineralisation close to surface.

Historic Work

Between 1975 and 1985, the Adaro/Peñarroya joint venture carried out exploration on the four separate licences which now correspond, approximately, to the Toral permit area. Over a period of nine years, a topographical survey, geological mapping, a hydrogeological study and more than 40,000m of diamond drilling (62 holes and 41 wedges) were carried out.

Lundin Mining S.L. (Lundin) acquired the Toral investigation permit no. 15.199 in 2007 and commenced exploration in April 2007. Lundin compiled the information collected by the previous licence holders. In addition, samples of drill core were sent to ALS Chemex in Canada in order to validate the reliability of the existing assays and exploration information was digitised. The results of Lundin's preliminary work confirmed the mineral potential of the Toral area. However, it was apparent that the continuity and the thickness of the mineralisation were insufficiently detailed. In 2007 to 2009, seven diamond holes for a total of 4,523.7m were drilled for the purpose of confirming the continuity of the mineralisation in the San Jose area of the Toral permit and also to test the possibility of an extension of the mineralisation in depth.

GoldQuest acquired Lundin, including the Toral permit, in January 2010. During 2011 and 2012, GoldQuest conducted systematic geological mapping and soil sampling.

The Board believes that the observations and results of work programme carried out by Ferrum Crescent from October 2016 to January 2017, suggest the following:

· Measurable and anomalous mineralisation extends for at least two kilometres at the Toral

Project

· More than one mineralising horizon has been identified

· More than one mineralising style has been identified

· There is a structural control on the emplacement, thickness and paragenesis of the

mineralisation

· Transverse and cross-cutting faults may act as controlling factors on mineralising fluids

Following receipt and interpretation of the positive mapping and sampling results, Ferrum Crescent has drawn up a drill plan comprising thirteen holes off twelve drill platforms, totalling from 1,600 metres to 1,800 metres of diamond drilling. The primary drill targets are zones of co-incident anomalies combining soil geochemistry, rock alteration, visible mineralisation at surface or underground, and structurally favourable zones.

Using a GIS (geographic information system), Ferrum Crescent has compiled all the various data streams into a three dimensional model. The proposed 2017 drilling campaign has been based on the new understanding of the Toral Project and identification of new target zones.. Drillholes are designed to intersect multiple zones of mineralisation at depths from 50 metres to 200 metres below surface. In order to facilitate access, all drill platforms are located on existing tracks and roads.

Lago Project

The Lago Project is located approximately 54km to the north-east of the Toral Project in the province of Galicia. 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.

Corporate

Subsequent to the Company entering into an exclusive option to acquire 100 percent of GoldQuest, two nil-cost extensions were granted to Ferrum Crescent and on 22 September 2016 the option was exercised. Accordingly, the Company has acquired 100 per cent. of the share capital of GoldQuest. GoldQuest owns 100 per cent. of two lead-zinc exploration projects in the provinces of Leόn and Galicia, in historic Spanish mining areas. Consideration comprised GBP326,500 in cash and the issue of 100 million new ordinary shares in the capital of Ferrum Crescent.

On 25 July 2016, the Company announced that it had conditionally raised in aggregate, GBP 374,453 (AU$655,034) before expenses through a placement via Beaufort Securities Limited, as agent to the Company, of 187,226,485 new ordinary shares of no par value each in the capital of the Company at a price of 0.20 pence per new ordinary share. 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 of the placing shares trading on AIM. In addition the Company has agreed to grant a further 18,722,649 options to Beaufort Securities Limited on the same terms. Following admission, the total issued ordinary share capital of the Company was 1,470,018,368 ordinary shares.

On 28 July 2016, the Company announced that it was issuing 66,874,816 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate 66,874,816 options exercisable at a price of 0.165 pence per share, raising AUD 193,025 before expenses. Such options were granted in connection with the Company's placing and subscription announced on 27 April 2016. Following the issue of the option shares and the abovementioned placing shares, the total issued ordinary share capital of the Company was 1,536,893,184 ordinary shares.

On 26 August 2016, the Company announced that it was issuing 44,797,543 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, a further 44,797,543 options exercisable at a price of 0.165 pence per share, raising AUD 128,184 before expenses. Such options were granted in connection with the Company's placing and subscription announced on 27 April 2016. Following the issue of these option shares, the total issued ordinary share capital of the Company was 1,581,690,727 ordinary shares.

On 23 September 2016, the Company announced that was issuing 5,381,907 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 5,381,907 options exercisable at a price of 0.165 pence per share Such options were granted in connection with the Company's placing and subscription announced on 27 April 2016. Following the issue of these further option shares, the total issued ordinary share capital of the Company was 1,587,072,634 ordinary shares.

On 29 September 2016, the Company announced the following proxy results of the General Meeting of Shareholders held on said date in respect of the resolutions set out in the Notice of General Meeting dated 23 August 2016. Resolution 1, 2 and 3 were passed on a show of hands.

Resolution 1: Ratification of prior issue of Shares

Resolution 2: Approval of grant of Placement Options

Resolution 3: Approval of grant of Broker Options

Also on 29 September 2016, the Company announced that it was issuing 100,000,000 new ordinary shares of no par value each in the capital of the Company to GoldQuest Mining (Spain) Corp

On 30 September 2016, the above shares were issued in settlement of the share element of the consideration for the acquisition of 100 per cent. of the issued share capital of GoldQuest. The shares are fully paid and rank pari passu in all respects with the Company's existing ordinary shares. Following the issue of the shares, the total issued ordinary share capital of the Company was 1,687,072,634 ordinary shares.

On 4 October 2016, the Company granted 187,226,485 new unlisted options to investors who subscribed for placing shares on a one for one basis and 18,722,649 new unlisted options to Beaufort Securities Limited as settlement of certain corporate broking fees. These options are exercisable at 0.30 pence per share on or by 29 July 2018

On 7 October 2016, the Company announced that was issuing 181,560,288 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 181,560,288 options exercisable at a price of 0.165 pence per share These options were granted in connection with the Company's placing and subscription announced on 27 April 2016. Following the issue of these further option shares, the total issued ordinary share capital of the Company was 1,814,787,339 ordinary shares.

On 25 November 2016, the Company issued 769,231 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 769,231 options exercisable at a price of 0.165 pence per share. The options were granted in connection with the Company's placing and subscription announced on 27 April 2016. Following the issue of these further option shares, the total issued ordinary share capital of the Company was 1,869,402,153 ordinary shares.

On 12 December 2016, the Company announced that it had conditionally raised approximately GBP550,000 before expenses via a placement of 275,218,025 new ordinary shares of no par value in the capital of the Company at 0.2 GBP pence per new ordinary share. Following the issue of these shares, the total issued ordinary share capital of the Company was 2,144,620,178 ordinary shares.

On 22 December 2016, the Company issued 3,205,088 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 3.205,088 options exercisable at a price of 0.165 pence per share. The options were granted in connection with the Company's placing and subscription announced on 27 April 2016. Following the issue of these further option shares, the total issued ordinary share capital of the Company is 2,147,825,266 ordinary shares.

Events subsequent to reporting date

On 9 January 2017, the Company announced a contract of employment had been entered into with the Company's Executive Chairman and that Mr Merlin Marr-Johnson had been appointed as Project Manager with his principal responsibility being the progression of the lead-zinc projects held in Spain.

On 16 January 2017, the Company announced that Business Venture Investments No.1709 (Pty) Ltd (BVI) had not completed BFS Phase 1 in accordance with the terms of the farm-in and joint venture Agreement and the extended deadline of 12 January 2017.

On 25 January 2017, the Company announced the resignation of Mr Klaus Borowski as a Non-Executive Director and the appointment of Mr Laurence Read to replace him on the Board.

On 14 February 2017 the Company announced that it had formally terminated the farm-in and joint venture Agreement with BVI.

On 23 February the Company announced the exploration results and drill programme of the Toral project in Spain.

Ferrum Crescent Limited

ACN 097 532 137

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the half-year from 1 July 2016 to 31 December 2016

(Loss) per share attributable to the ordinary equity

holders of the Company

Ferrum Crescent Limited 

ACN 097 532 137

Consolidated Statement of Financial Position

As at 31 December 2016

Ferrum Crescent Limited

ACN 097 532 137

Consolidated Statement of Changes in Equity

For the half-year from 1 July 2016 to 31 December 2016

Ferrum Crescent Limited

ACN 097 532 137

Consolidated Statement of Cash Flows

For the period 1 July 2016 to 31 December 2016