19th Feb 2014 13:40
LONDON (Alliance News) - Ferrum Crescent Ltd Wednesday said it has varied the terms of its agreement with Anvwar Asian Investment in relation to the purchase by AAI of a 35% interest in the Moonlight Iron Ore Project in Limpopo Province, South Africa.
The development and production mining company said that, under the new terms, AAI will still pay the total consideration of USD10 million for the 35% interest.
Ferrum said AAI will pay an initial USD1 million by mid-March, and thereafter will pay USD500,000 each month until the full purchase price has been paid.
The company said that additionally, AAI will advance to Ferrum in Australia an additional USD1.5 million to assist with its bankable feasibility study costs by way of three payments of USD500,000 per month.
Ferrum said that the new schedule protects funds from currency fluctuation risk, tracks necessary spending and will only be accelerated in the event that the BFS is carried out in less than 24 months.
The company said further meetings are scheduled in South Africa to conclude all arrangements on March 14 and 15.
Ferrum separately announced that following the new agreement, Tom Revy, an experienced project manager and developer, has been appointed as Managing Director of Ferrum Crescent in order to oversee the BFS.
Ferrum Crescent shares were up 1.0% to 2.98 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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