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Ferrum in negotiations to secure funds to complete Moonlight BFS

30th May 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Iron-ore developer Ferrum Crescent is currently engaging with a number of parties, including Oman-based investment company Anvwar Asian Investment (AAI) to secure funds of between $10-million and $13-million that would enable the company to complete the full bankable feasibility study (BFS) for its Moonlight iron-ore project, in Limpopo.

Ferrum on Friday said it had received a single payment of $500 000 from AAI in accordance with an agreement signed between the two companies; however, the agreed upon second payment of $500 000 was not made and Ferrum was in discussions with AAI over its breach of contract.

“There are [also] other parties in discussions with Ferrum and the company is looking at financing options that will secure optimal partnerships for the completion of the BFS and beyond,” Ferrum said.

The company pointed out that Moonlight was an advanced project, which was potentially capable of producing a high-grade iron-ore pellet product, adding that Ferrum was reviewing the use of established infrastructure for transportation.

“Given the project’s situation and stage of development and the premium product that it should be able to produce, the company believes that this is the best course of action at this stage,” Ferrum added.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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