5th May 2015 07:27
LONDON (Alliance News) - Ferrum Crescent Ltd shares rose in early trade on Tuesday after the company said it has signed a memorandum of understanding with South African investment company Principle Monarchy Investments Ltd to sell a 39% stake in the Moonlight Iron project in South Africa.
The sale will be conducted via a placing of shares in Ferrum Iron Ore Ltd, a 97%-owned subsidiary of Ferrum Crescent which owns the Moonlight project.
The total raised via the subscription will be USD12 million, which will be used to carry out the bankable feasibility study on the project, Ferrum said.
"We have now secured a highly credible BEE partner within South Africa to fund the key elements of the BFS for the Moonlight Iron Project," said Ferrum Managing Director Tom Revy.
Ferrum shares were up 42% to 0.85 pence Tuesday morning, having touched 1.00p earlier, the best performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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