30th Jul 2015 09:26
LONDON (Alliance News) - Ferrum Crescent Ltd Thursday provided an second quarter update for its Moonlight iron ore project in South Africa, and said it is still awaiting the long-overdue payment from its new partner on the project.
The miner said it is progressing the bankable feasibility study for the project, which it restarted in the fourth quarter of 2014, and said the next steps include defining a full ore reserve, establishing the final costings and designs for the benefication plant and pelletiser and deciding whether or not to conduct bulk sampling.
Once those goals have been achieved, Ferrum will work with infrastructure providers in the area in order to secure trade routes and energy.
Ferrum signed a memorandum of understanding with Principle Monarchy Investments (Proprietary) Ltd in early May whereby Principle would buy a 39% stake in the Moonlight Iron Project in Limpopo Province by subscribing for shares in the Ferrum Crescent unit that holds the project.
It was to pay a total of ZAR142 million, or USD12 million, with interim funding of ZAR2 million a month to be made until the first ZAR30 million bulk tranche was made. The memorandum of understanding would become binding once the first ZAR2 million payment is made.
However, that has had its problems as the company is still awaiting that first payment, meaning the deal is still not binding. On Thursday, Ferrum said it was still expecting this payment "shortly" despite the company stating the payment was expected "on or around Wednesday 22 July 2015".
That first payment was originally due on June 1, but has faced numerous delays since.
Ferrum shares were up 3.5% to 0.440 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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