PERTH (miningweekly.com) – ASX-, JSE- and Aim-listed Ferrum Crescent has signed a memorandum of understanding with South Africa’s Principal Monarch Investment for $12-million in funding to complete the bankable feasibility study on its Moonlight iron project, in South Africa’s Limpopo.
In return for the $12-million in funding, which would be payable in three tranches, Principal would receive a 39% stake in the proposed Moonlight project.
“We have now secured a highly credible black-economic-empowerment partner within South Africa to fund the key elements of the bankable feasibility study for the Moonlight iron project,” said Ferrum Crescent MD Tom Revy.
The Moonlight project has a Joint Ore Reserves Committee-compliant measured resource of 52.6-million tonnes, at 31.3% iron, and an indicated resource of 83-million tonnes, at 27.4% iron. The project is expected to have a 20-year mine life, and has export offtake agreements in place for the sale of 4.5-million tonnes a year of pellets.
“I cannot stress enough the importance of Moonlight as a high-grade production source with easy routes to both domestic and international steel markets. Our focus on providing the South African steel industry with a new source of high-grade iron pellet has been an important focus for the company in 2015,” Revy said.