JOHANNESBURG (miningweekly.com) – Triple-listed Ferrum Crescent has granted a deadline extension for the first payment of R2-million, owed by Principle Monarchy Investments (PMI) as part of a bankable feasibility study financing agreement.
The iron-ore developer said on Wednesday that the first payment was due on June 1, but that PMI had requested an extension to complete its internal restructuring.
Ferrum and PMI signed a memorandum of understanding (MoU) on May 5, in terms of which PMI would acquire 39% of the Moonlight project, in Limpopo.
In the early 1990s, it was estimated that the project was capable of producing a concentrate grading 68.7%, but Ferrum believed these estimates were “conservative”.
The payment deadline was extended to July 14 and upon payment, the the MoU would become legally binding.
PMI would then be required to contribute R2-million a month until completion of the first subscription tranche of R30-million, which must still be paid by December 1, with the monthly payments to be credited towards this first subscription tranche.