Ferrum Crescent seals $13.5m funding deal for Moonlight
PERTH (miningweekly.com) – ASX-, Aim- and JSE-listed Ferrum Crescent has sold off a 35% shareholding in its Moonlight iron-ore project, in South Africa’s Limpopo, to Anvwar Asian Investment for $10-million.
Oman-based Anvwar also agreed to contribute $3.5-million to the ongoing costs of the bankable feasibility study (BFS) currently being undertaken at Moonlight.
Under the terms of the agreement, Anvwar would make an initial $1-million payment to Ferrum Crescent by the end of November, with the balance due in the first quarter of 2014.
Ferrum Crescent plans to use the funds to progress the Moonlight BFS and for working capital requirements.
“Anvwar is an important strategic partner for Ferrum Crescent as we look to move the Moonlight iron-ore project towards construction,” commented Ferrum Crescent chairperson Ed Nealon on Tuesday.
He noted that the Moonlight project was unique, with metallurgy showing that a very high-grade iron product could be produced and shipped using existing infrastructure.
Ferrum Crescent owns the Moonlight project through its direct and indirect shareholding in Ferrum Iron Ore, which is 26% held by investment partner Mkhombi Investments.
Subject to the conditions precedent, and following the investment, Ferrum Crescent would hold a 39% interest in Ferrum Iron Ore, with Mkhombi retaining its 26% share and Anvwar holding 35%.
The Moonlight BFS was launched in February and is expected to be completed in the first half of next year. Construction at Moonlight is slated to start by 2015, and will be completed by 2018.
The project has a Joint Ore Reserves Committee-compliant measured resource of 52.6-million tonnes grading 31.3% iron. The resource is sufficient to support a 20-year mine life, producing some six-million tonnes a year of iron-ore pellets for both domestic sales and export.
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