Last checked at 29 Jan 2015 07:00
29 January 2015
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group") (ASX: FCR, AIM: FCR, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 31 December 2014
Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in northern South Africa, today announces its quarterly results for the three month period ending 31 December 2014.
HIGHLIGHTS:
Moonlight Iron Ore Project:
Ø Bankable feasibility study ("BFS") manager appointed for Moonlight Iron Ore Project
Ø BFS work program progressed
Ø Drilling program defined for completion Q1 2015, key objectives:
o Mine plan preparation for the first ten years of production and
o Defining sample locations for definitive metallurgical test work
Ø Advanced stage BEE and other partner process continues
Ø Consultation with study managers and engineering partners continues
o Efficiencies identified for key beneficiation plant costings
Corporate:
Ø Cash as at 31 December 2014 was approximately AU$1.062m
Ø Rights issue to raise up to $2.03m concluded - total gross funds raised being approximately $1.03m.
(Under ASX Listing Rule 7.2, exception 3, shortfall shares issued within 3 months of the close of a pro-rata rights issue are not counted for the purposes of calculating the 15% capacity to issue shares without shareholder approval, provided the pro-rata rights issue offer document stated that directors had the discretion to place shortfall shares. The offer closed on 10 November 2014, and the $1.03m included shortfall shares issued after the offer closed).
Commenting today Tom Revy, Managing Director, said:
"The last quarter of 2014 saw Ferrum Crescent appoint a senior study manager for the Moonlight Iron Ore Project and complete key tasks that will allow us to progress the BFS early in 2015 with the commencement of a new drilling program. We are now gaining real traction for the Moonlight project in terms of completing a BFS that defines the economics for a high-grade iron ore product located near infrastructure. On the ground we are delighted with the support that the Moonlight Iron Ore Project has from the South African local communities and municipalities as well as to the governments of South Africa and Limpopo and their agencies. This support will be particularly important as we move into the logistics-planning phase of the BFS. During Q1 2015 we shall be working with a number of groups on site at Moonlight to secure a new investment partner to complete the BFS".
Overview
Ferrum Crescent during the quarter carried out a non-renounceable rights issue and raised $1.03 million before costs. These funds were raised with a view to continuing the Company's strategy of securing key BEE and other cornerstone investors, as well as preparing the work-flows that will complete key components of the Moonlight Iron Ore Project BFS.
The Board made the decision to appoint a senior study manager to the Moonlight Iron Ore Project, and in December the services of Mr Ed Alymer were secured. Mr Alymer has more than 30 years' experience in the mining and mineral processing industries and has acted as senior study manager for project developments on behalf of Severstal, Vendanta, Goldfields and Ivanplats. Mr Alymer is based in Johannesburg, South Africa.
Mr Alymer, working with Managing Director Tom Revy, completed the planning for a new drilling program to assist in the preparation of a mine plan for the first ten years of operations and to collect samples for the next metallurgical testwork component of the BFS. The planned drilling program consists of 10 reverse circulation ("RC") holes with the work expecting to be complete during Q1 2015.
Ferrum Crescent is also undergoing a period of corporate development as the Moonlight BFS restarts. In December 2014 Mr Ted Droste and Mr Kofi Morna left the Board of the Company.
The process to secure investment partners for Moonlight continued to the stage where during Q1 2015 a number of groups will make visits to the Moonlight project as part of their own internal due diligence work.
Exploration Interests
As at 31 December 2014, the Company held an interest in the following mining Rights ("Rights"):
Project | Location | Right Number | Right Status | Holder | Percentage Interest |
Moonlight | Limpopo Province, South Africa | 30/5/1/2/2/201 MR | Mining Right Granted | Ferrum Iron Ore (Pty) Ltd | 97% |
Moonlight
| Limpopo Province, South Africa | 30/5/1/2/2/201 MR | Prospecting Right Application | Ferrum Iron Ore (Pty) Ltd | 97% |
No licences were acquired or disposed of during the quarter.
Appendix 5B: http://www.rns-pdf.londonstockexchange.com/rns/4401D_-2015-1-28.pdf
For more information, please visit www.ferrumcrescent.com or contact:
Australia and Company enquiries: | UK enquiries: |
Ferrum Crescent Limited Ed Nealon T: +61 8 9367 5681 Chairman
Tom Revy T: +61 8 9367 5681 Managing Director | Hume Capital Securities (Broker) Jon Belliss T: +44(0)20 3693 1470
RFC Ambrian Limited (Nominated Adviser) James Biddle/Andrew Thompson T: +44 (0) 20 3440 6800
Ferrum Crescent Limited Laurence Read (UK representative) T: +44 7557672432
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South African JSE Sponsor enquiries: | Bravura Capital (Pty) Ltd Doné Hattingh T: +27 11 459 5037 |