29th Nov 2013 09:55
LONDON (Alliance News) - Iron-ore developer Ferrum Crescent Limited Friday said Oman-based Anvwar Asian Investment has completed due diligence on its planned investment in Ferrum Crescent, and shareholders agreements are now underway.
Earlier this year, Ferrum signed a USD13.5 million investment agreement with AAI to facilitate the completion of its bankable feasibility study at the Moonlight iron ore project in South Africa. AAI will pay USD10 million to acquire a 35% stake in Ferrum Iron Ore (Pty) Ltd., which holds the mining right over the three farms that contain the Moonlight Deposit.
Ferrum Crescent said the structure of the transaction will be finalised with the signing of the relevant shareholders' agreement during January 2014, when the first payment of USD1 million will be made. The remaining USD9 million of the purchase price will be paid at the end of February 2014.
AAI will contribute a further USD3.5 million toward costs of the project in stages.
Ferrum Crescent was trading up 0.01 pence at 2.13p Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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