28th Oct 2014 08:50
LONDON (Alliance News) - Ferrum Crescent Ltd saw its shares drop early Tuesday, after it gave a quarterly activities report in which it said it had continued planning its bankable feasibility study for its Moonlight iron ore project but didn't give any detail on how its rights issue is progressing.
The South African iron ore developer announced a AUD2.0 million two-for-three discounted rights issue on October 9, seeking to raise funds to completion of the bankable feasibility study at Moonlight as well as for corporate overheads. It has been seeking funding for Moonlight and to pay its debts.
On Tuesday, it didn't give any indication on how the rights issue is progressing, although it reiterated that it will raise at least AUD860,000 because that amount has been underwritten by Patersons Securities Ltd.
It said it had about AUD245,000 in cash at the end of September.
Managing Director Tom Revy said the company had continued to prepare to re-start the Moonlight bankable feasibility study during September, and its priority remains securing the "correct" cornerstone investor.
"Ferrum Crescent continued its dual strategy of preparing the work-flows that shall complete key components of the Moonlight BFS, while ensuring the company remains on a solid corporate footing," the company said in a statement.
"Operational elements within the quarter included consultation sessions with both study managers and engineering partners to agree technical goals for metallurgical and plant design BFS components. The results of these sessions were constructive with efficiencies identified for the generation of final, signed off, costings for the beneficiation plant," it added.
Ferrum Crescent shares were down 17.3% at 0.352 pence early Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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