15th Jun 2016 08:31
LONDON (Alliance News) - Ferrum Crescent Ltd on Wednesday said it completed its review of the Moonlight project and will refocus its operations, undertaking an engineering study and commencing talks with potential offtake parties, as it looks to complete its acquisition of GoldQuest Iberica SL.
The miner said it is now "actively evaluating" engineering pathways for alternate production routes for its Moonlight magnetitle iron ore project, located in Limpopo Province in South Africa, based on existing technologies and modelled on current equipment types in use at comparable mining operations.
Ferrum said it is also in talks with potential new offtake partners for the supply of concentrate to the site, and is undertaking an ongoing assessment of potential construction or production share partners with its farm-in partner Business Venture Investments.
Ferrum has also recently reinitiated a process to seek to recover historic exploration data and core samples in respect of the Julietta and Moonlight licence areas, it said.
A memorandum of agreement and co-operation framework has been signed with the mayor of the Lephalale Municipality situated in the Waterberg District of the Limpopo Province, Ferrum said, and this, along with its full mining permit, means the Moonlight project can be progressed into development.
Elsewhere in the business, Ferrum said it has received the GBP650,000 raised in its equity fundraising in early May 2016, and said the transaction documentation and legal documentation to enable it to exercise its option over GoldQuest is at an advanced stage.
GoldQuest owns interests in two lead-zinc exploration projects in Northern Spain, and Ferrum's option over GoldQuest is valid until July 31.
"The board is confident that the company will be able to exercise the option and complete the acquisition of GoldQuest ahead of this scheduled deadline," Ferrum said.
Ferrum added that its planned work programme to determine the extent of the mineralisation on GoldQuest's two projects is expected to commence shortly following completion of the proposed acquisition.
"Our recent reprioritising of tasks and corporate restructuring is showing real benefits as we endeavour to derive value from our flagship project in South Africa and option over GoldQuest in Spain," said Executive Chairman Justin Tooth.
"With a world-class team of geologists and mining engineers in place, with significant experience of working in our key geographic regions, we are well placed to obtain and re-process the additional historical exploration data on Moonlight and finalise key development agreements. This will strengthen our ability to negotiate with credible partners for the future development of mining operations. We have an exciting time ahead and I look forward to announcing a further update in due course," Tooth added.
Shares in Ferrum were down 0.7% at 0.223 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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