Name and Location
Moonlight Crescent iron-ore project, Limpopo, South Africa.

Client
Ferrum Crescent.

Project Description
The Moonlight Crescent iron-ore project, located on the three farms Moonlight, Julietta and Gouda Fontein, in Limpopo, has been configured as a 4.5-million-tonne-a-year pelletised iron-ore concentrate operation. The project is expected to produce iron concentrate of about 69%.

The project has a Joint Ore Reserves Committee-compliant measured resource of 52.6-million tonnes grading 31.3% iron. The resource is sufficient to support a 20-year mine life, producing about six-million tonnes a year of iron-ore pellets for domestic sale and export.

Value
The total value of the project has not been disclosed; however, R22-million has already been spent on exploration work.

Duration
Construction at Moonlight is expected to start by 2015 and will be completed by 2018.

Latest Developments
Oman-based Anvwar Asian Investments' (AAI’s) completion of an in-house due diligence of the acquisition of a 35% stake in the Moonlight iron-ore project from Ferrum has enabled the project to progress to the bankable feasibility study (BFS) stage.

Ferrum reports that conditions precedent to the buy-out have been met or waived; the parties will  finalise the structure of the transaction and conclude the relevant shareholders’ agreement.

Ferrum chairperson Ed Nealon says that the conclusion of the due diligence by AAI enables both groups to complete structuring agreements and secure funds that will enable the Moonlight BFS to be concluded.

The first $1-million payment of the $10-million deal will be made in January, followed by the balance by the end of February.

AAI will pay another $3.5-million in stages to complete the Moonlight BFS, which is set to start in 2014.

Working with AAI, Ferrum will consider progressing the BFS in early 2014.

AAI chairperson Anvwar Al Balushi is expected to visit South Africa in early 2014 to sign the shareholders’ agreement.

Key Contracts and Suppliers
ProMet Engineers (detailed scoping study) and Mineral Corporation Consultancy (updated resource estimate).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ferrum Crescent, tel +27 11 510 0159, fax +27 86 219 5701 or email info@ferrumcrescent.com.
ProMet Engineers, tel +27 21 556 9759, fax +27 21 556 9758 or email info@promet.co.za.