15th Mar 2021 12:08
Ferro-Alloy Resources Ltd - vanadium mining and processing company operating in Kazakhstan - Reports 56% increase in vanadium pentoxide production in 2020 to 237 tonnes, while production of calcium molybdate commenced in October providing an additional revenue stream. Separately says that it has entered a subscription agreement for up to USD12.6 million with Vision Blue Resources, a company led and founded by former Xstrata Chief Executive Mick Davis, and a limited number of co-investors. Davis will join Ferro-Alloy as chair, while current chair, Chris Thomas, will resume the role of non-executive director on Davis's appointment.
"The Ferro Alloy Resources investment case is compelling, has an attractive risk profile and many qualities that are difficult to find in other mining investment opportunities. The Balausa project has the potential to become the lowest cost producer of vanadium globally and to deliver highly attractive returns to its shareholders," says Davis. Miner Xstrata merged with Glencore PLC back in 2013.
Davis adds: "There are multiple near-term catalysts for the company, and I expect to see significant progress in the coming months."
The total funding package of up to USD12.6 million at a subscription price of 9p per share comprises an initial investment in two stages of up to USD3.1 million by VBR, and further investment rights granted to VBR of up to USD9.5 million at the issue price. The deal will see VBR acquire 21% of Ferro-Alloy. Ferro-Alloy also has granted VBR offtake rights worth USD10.0 million for up to 25% of all the vanadium materials it produces.
Current stock price: 14.61 pence; up 39% on Monday
Year-to-date change: up 45%
By Lucy Heming;Â [email protected]
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