JOHANNESBURG (miningweekly.com) – A farm-in and joint venture agreement between triple-listed metals project developer Ferrum Crescent and Business Venture Investments (BVI) has stalled, after the latter failed to complete the first phase of a bankable feasibility study (BFS) at Ferrum’s Moonlight iron-ore project, in Limpopo.
In October 2015, BVI agreed to fund the BFS in return for a 43% stake in the project’s holding company Ferrum Iron Ore; however, in January 2016, Ferrum announced that the completion of the BFS had been extended to January 2017.
Ferrum on Monday said that BVI had not met the extended deadline of January 12 for the study.
“While reserving our rights under the agreement, we are in ongoing discussions with BVI and are considering options in relation to the potential development of the Moonlight project,” the company said in the statement.
The deposit is located on the Moonlight, Gouda Fontein and Julietta farms. The proposed project involves mining and beneficiating, a slurry pipeline to the area close to railhead, as well as the manufacturing of a six-million-ton-a-year blast furnace and the production of direct reduced iron-grade pellets for export and domestic sale.