JOHANNESBURG (miningweekly.com) – Triple-listed Ferrum Crescent on Thursday announced that it was undertaking a nonrenounceable pro rata rights issue to raise about A$2.03-million.
Ferrum noted that the rights issue would be partially underwritten by Patersons Securities, ensuring that the company would raise at least A$860 000.
The funds would be used to complete key components of the bankable feasibility study (BFS) currently under way at the company’s Moonlight iron-ore project, in Limpopo, as well as for corporate overheads.
“The directors of the company consider it to be the correct time to move the BFS process significantly forward due to the infrastructure upgrade programmes currently under way in support of Limpopo,” Ferrum said.
The BFS objectives were to assess the economic viability of extracting iron-ore from a low stripping ratio, openpit mine to then be slurried to an existing Transnet rail terminal, where a high-grade pellet could be produced and shipped.
The results of completed BFS metallurgical work has indicated that the Moonlight project will produce a pellet product with a 68% to 70% grade, the company said.
Ferrum noted that it would deploy funds from the rights issue to complete final costings for most of the major mining and processing elements.
Completion of this phase of work would allow for final negotiations and planning with major infrastructure partners and local communities, it added.