18th Mar 2014 10:25
LONDON (Alliance News) - Ferrum Crescent Ltd Tuesday said it had signed a final investment agreement with Anvwar Asian Investment, allowing it to progress a so-called bankable feasibility study at its Moonlight Iron Ore Project.
Under the deal, which gives Ferrum an implied valuation of USD28 million, Oman-based AAI will pay Ferrum USD10 million for 35% of the Moonlight Iron Ore project.
A bankable feasibility study is an evaluation of a proposed mining project to determine whether the mineral resource can be mined economically. It is of sufficient detail that it can be used to arrange project financing.
In a statement, Ferrum said it will get USD500,000 immediately and a further USD500,000 before April 30. Once those payments are made, Ferrum will re-start the bankable feasibility study under the supervision of recently-appointed Managing Director Tom Revy.
"I believe the recommencement of the BFS is the first step towards realising the true value of the Project to Ferrum Crescent investors. The investment by AAI directly into the Project clearly highlights the undervalued position of the company," Revy said.
Ferrum Crescent shares were up 7.9% at 1.7 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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