31 October 2016
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Quarterly Activities and Cashflow Report For the period ended 30 September 2016
Highlights Moonlight Iron Project
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Development options under review for potential reduced cost production pathways
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Study initiated on pelletising technology
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Review of product offtake agreements
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Transportation costing review for various product types
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Mining Right Annual Compliance Report completed and filed
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Memorandum of Agreement and coâ€operation framework signed with Lephalale Local Municipality securing the necessary consents from local stakeholders for progression of the project into future development
Spanish leadâ€zinc exploration projects
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100% of the share capital of GoldQuest Iberica, S.L. ("GoldQuest") acquired by Ferrum Crescent following exercise of the Company's exclusive option from TH Crestgate GmBH ("Crestgate") on 22 September 2016
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Toral & Lago leadâ€zinc exploration assets 100% owned by GoldQuest (the "Spanish Projects")
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Planned exploration work programme developed seeking to reinterpret the historic data package, including historic drill core samples and surface work with processing analysis to then be carried out
Corporate
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£374,453 raised through a share placement with the net proceeds to be utilised for general working capital purposes and the progression of the Spanish Projects. 205,949,134 options, in aggregate, issued in connection with this fundraising entitling the holders to subscribe for new ordinary shares at a price of 0.30 pence per share for a two year period
ACN 097 532 137 Suite 6, Ground Floor, 9 Bowman Street Share code FCR on the ASX, AIM and the JSE SOUTH PERTH WA 6151, AUSTRALIA www.ferrumcrescent.com PO Box 189, South Perth, WA 6951
[email protected] Tel: +61 8 9474 2995 Fax: +61 9474 2937
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117,054,266 new ordinary shares issued further to the exercise of options at a price of
0.165 pence per share
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£326,500 paid in cash and 100 million new ordinary shares of no par value each in the capital of the Company issued to Crestgate's wholly owned subsidiary, GoldQuest Mining (Spain) Corp., as consideration for the acquisition of 100% of the shares in GoldQuest, further to the exercise of the Company's abovementioned option
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Cash balance at the end of the quarter: A$1,162,000
Post Quarter End:
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A further 181,560,288 options exercised at a price of 0.165 pence per new ordinary share, raising £299,574 gross
Exploration Interests
The following information is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 30 September 2016:
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Listing of tenements held:
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Project
|
Location
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Right Number
|
Right Status
|
Holder
|
Percentage Interest
|
|
Moonlight
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Limpopo Province, South Africa
|
30/5/1/2/2/201 MR
|
Mining Right Granted
|
Ferrum Iron Ore (Pty) Ltd
|
97%
|
|
Moonlight
|
Limpopo Province, South Africa
|
LP30/6/1/1/2/11868PR
|
Prospecting Right Application
|
Ferrum Iron Ore (Pty) Ltd
|
97%
|
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Listing of tenements acquired (directly or beneficially) during the quarter:
Project Location Right Number Right Status Holder Percentage
Interest acquired during quarter
Toral León Province, Spain
-
Investigation Permit
GoldQuest Iberica, S.L.
100%
Lago Galicia Province, Spain
Lago II 6.056
Lago III 6.058
Lago II Exploration Permit Lago III
Investigation Permit
GoldQuest Iberica, S.L.
100%
No tenements were disposed of during the quarter.
Justin Tooth, Executive Chairman of Ferrum Crescent, today commented:
"In the quarter under review we focused on dual elements; we continued to work towards progressing our Moonlight project whilst our exclusive option over promising brownfield leadâ€zinc assets in Spain required careful evaluation and negotiation. At Moonlight, we have been reviewing and discussing development pathways with potential engineering partners for a possible reduced cost production model.
"Regarding Spain, following two short nilâ€cost option extensions to ensure that the vendors had addressed the various conditions precedent to the Board's satisfaction, in late September the Company exercised its right to acquire 100% of Goldquest and its promising leadâ€zinc assets. We are now progressing exploration activities at the Toral project site and have simultaneously begun to reassess the considerable amounts of historical geological data on the asset and prepare it for suitable recodification and release. I look forward to updating the market further in due course."
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman Grant Button, Company Secretary T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative) T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser) Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker) Elliot Hance
T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor) Doné Hattingh
T (direct): +27 11 459 5037
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.
Notes to Editors:
Further Information on the Spanish leadâ€zinc Exploration Projects
Toral Project
The Toral Project has been extensively explored historically by its previous owners Portex Minerals Inc. and Lundin Mining S.L. and the 2,024ha of mineral rights contains extensive high grade zinc mineralisation. Located in northâ€west Spain, approximately 400km northâ€west of Madrid, the project's licence area hosts excellent road, rail and power infrastructure and is situated in a known historic mining jurisdiction. The asset also has a preâ€existing NI 43â€101 resource estimate reported by Micon International Co. Limited on 30 April 2012.
Lago Project
The Lago Project is located approximately 54km to the northâ€east of the Toral Project. Historical investigations completed by or on behalf of the Spanish mining firm, Exploracion Minera International Espana S.A. ("EXMINESA"), between 1985 and 1990, indicated that mineralisation at the Lago Project may be similar to that encountered at the Toral Project with vertical, lenticular bodies (probably more than one) approximately 800m long by 300m wide.
2016 Spanish work programme overview
Further Information on the Moonlight Project, South Africa
Ferrum Crescent's principal project is the Moonlight Iron Project located in Limpopo Province in the north of South Africa. The Moonlight Deposit (upon which the Project is based) is a magnetite deposit located on the Moonlight, Gouda Fontein and Julietta farms and is the main operational focus for the Company. Iscor Limited ("Iscor"), which explored the Project in the 1980s and 1990s, reported mineralisation capable of producing a concentrate grading at 68.7% iron. At that time, Iscor concluded that the deposit, which was described as being comparable to the world's best, was easily mineable due to its low wasteâ€toâ€ore ratio.