JOHANNESBURG (miningweekly.com) – Triple-listed Ferrum Crescent on Wednesday said the stalled farm-in and joint venture (JV) agreement between its Ferrum Iron Ore (FIO) subsidiary and Business Venture Investments (BVI) has been formally terminated.
The parties had, under the JV agreement, sought to develop Ferrum’s Moonlight iron-ore project, in Limpopo, but BVI failed to complete the first phase of the project’s bankable feasibility study (BFS).
In October 2015, BVI agreed to fund the BFS in return for a 43% stake in the project’s holding company FIO; however, in January 2016, Ferrum announced that the completion of the BFS had been extended to January, 2017, which BVI was again unable to complete.
Consequently, BVI has not earned any equity interest in FIO.
Ferrum Crescent is now considering its options in relation to the potential development of the Moonlight project.