Conditional Equity Fundraising to raise £1m

20 March 2018

Ferrum Crescent Limited

("FCR", the "Company" or the "Group") (ASX, AIM, JSE: FCR)

Conditional Equity Fundraising to raise approximately £1 million (gross) for Toral Lead-Zinc Project, Spain

FCR, the European lead-zinc explorer, is pleased to announce that it has conditionally raised, in aggregate, approximately £1 million (before expenses), through a proposed subscription and placing of, in aggregate, 1,739,130,435 new ordinary shares of no par value each in the capital of the Company ("Ordinary Shares") at a price of 0.0575 pence per share (the "Issue Price") (the "Fundraising"). The Fundraising comprises a placing of 1,608,695,652 new Ordinary Shares via the Company's joint broker, Turner Pope Investments (TPI) Limited ("Turner Pope") as agent of the Company, and a subscription for a further 130,434,783 new Ordinary Shares, both at the Issue Price, with certain new and existing investors.

The Fundraising is subject to the requisite shareholder approval and, accordingly, the issue of the abovementioned new Ordinary Shares is conditional on, inter alia, the passing of certain resolutions by the Company's shareholders (the "Resolutions") at a duly convened general meeting of the Company (the "General Meeting"), notice of which will be set out in a notice of meeting to be posted to shareholders shortly.

Use of Proceeds

The Fundraising will provide sufficient financing and general working capital to progress the resource delineation and commissioning of an initial scoping study in respect of the Company's wholly owned Toral lead-zinc project, located in the Province of Leόn, northern Spain.

In particular, the net proceeds will enable FCR to build upon the Toral project's maiden JORC (2012) zinc, lead and silver resource estimate of [email protected]% Zinc equivalent (including lead credits) and 25 g/t Silver, as announced on 6 February 2018, via the completion of all key stage 1 work for 2018, including:

· an 8 hole drilling programme East along strike to potentially identify further scale for the resource;

· an initial scoping study to better assess the Toral project, detailing infrastructure requirements, potential mining methodologies and marketing options; and

· metallurgical test work on existing core samples to progress the Company's understanding of likely, saleable concentrates from a full mining operation.

An updated corporate presentation on the Company's Toral project and its current development strategy is available at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/3087I_-2018-3-20.pdf

Further Details on the Fundraising

The new Ordinary Shares to be issued pursuant to the Fundraising will be fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares. The Issue Price represents a discount of approximately 36.11 per cent. to yesterday's closing mid-market price on AIM of 0.09 pence per Ordinary Share (being the latest practicable business day prior to the date of this announcement). Application will be made in due course for quotation of the new Ordinary Shares on the Australian Securities Exchange and the JSE Limited, and to the London Stock Exchange plc for admission to trading on AIM with admission expected to occur shortly following the General Meeting.

The Company will issue a further announcement in due course on posting of the notice of meeting to provide formal notice of the requisite General Meeting with respect to seeking shareholder approval for, inter alia, the issue of the new Ordinary Shares pursuant to the Fundraising, the issue of the placing options and broker options in respect of the Company's previous fundraising announced on 2 November 2017 and replenishment of the Company's placement capacity under Listing Rule 7.1.

Proposed Change of Name

In order to better reflect the Group's primary focus on lead-zinc and precious metals assets within the European region, the Board also proposes that the Company's name be changed to 'Europa Metals Limited', and an appropriate resolution will be put to shareholders at the forthcoming General Meeting to secure the requisite shareholder approval to effect this change.

Commenting today, Myles Campion, Executive Technical Director of FCR, said:

"The injection of significant additional capital will enable the Company to move forward quickly and build on its recent maiden JORC resource estimate for Toral. I look forward to commencing our new 2018 field season, reviewing approximately 44,000m of existing core, conducting a new drill programme and embarking on a cost effective metallurgical sampling programme, the results of which will feed into a comprehensive initial scoping study."

Commenting today, Laurence Read, Executive Director of FCR, said:

"Securing this additional funding will allow the Company to commence a significant work programme to target additional resources and assess the development options for Toral to potentially become a fully operational mining concern in the future. The metallurgical programme, in addition to the data from the additional exploration work, will form the backbone of our development strategy for Toral as we look to progress the project towards a Bankable Feasibility Study and continue dialogue with a series of potential industrial and strategic investment partners."

For further information on the Company, please visit www.fcrexploration.com or www.ferrumcrescent.com or contact:

Ferrum Crescent Limited

Daniel Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 8 9486 4036

Laurence Read, Executive Director (UK)

T: +44 (0)20 3289 9923

Strand Hanson Limited (Nominated Adviser)

Rory Murphy / Matthew Chandler 

T: +44 (0)20 7409 3494

Turner Pope Investments (TPI) Limited (Joint Broker)

Andy Thacker / Guy Peters

T: +44 (0)20 3621 4120

Peterhouse Corporate Finance Limited (Joint Broker)

Lucy Williams / Duncan Vasey / Heena Karani

T: +44 (0)20 7469 0930

Bravura Capital (Pty) Ltd (JSE Sponsor)

Melanie De Nysschen T (direct): +27 11 459 5052

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.