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Ferrex, an AIM quoted iron ore and manganese development company in Africa, has announced it has entered into Placing Agreements to raise £1.655million gross through the issue of 92,500,000 ordinary 0.5p shares in the Company.
The funds raised will be used to continue the development of the Company’s low capex African iron ore and manganese assets, which are close to infrastructure, as well as for working capital purposes.
• YA Global Master SPV Ltd (YAGM) has subscribed for a total of 86,500,000 new ordinary shares in the Company at a price of 1.8p per share for £1.55 7 million in aggregate
•36,500,000 of these shares to be placed out with a select group of entities by YAGM
• An additional 6,000,000 shares has been placed at a price of 1.8p by the Company
• Separately the Company and YAGM have entered into an equity swap agreement for £0.45m
• YAGM has agreed restrictions on the volume of ordinary shares in the Company that it can trade from time to time and is subject to a 2 month voluntary lockup on the shares
Ferrex MD Dave Reeves said, “We are pleased to secure this additional capital which will support the Company as we look to complete a number of milestones which have been initiated over the past year which have the potential to add significant value to the company.
The funding will allow us to complete the DFS at our Nayega manganese project in Togo, continue operations at the Mebaga iron ore project in Gabon until the proposed funding transaction has completed and pay for the ongoing feasibility study costs at the Malelane iron ore project, in South Africa.
With the anticipated near term completion of various of these milestones, the company looks forward to providing further updates on each of the projects shortly thereby benefiting from the equity swap arrangements”.
YAGM has subscribed for a total of 86,500,000 new ordinary shares in the Company at a price of 1.8p per share and therefore for a gross £1.557min aggregate. YAGM have agreed with the Company that they will not dispose of any of their subscription shares for an initial 2 month period.
Completion of this Placing is conditional on admission of the Placing Shares to trading on AIM of the London Stock Exchange. Application will be made for the admission of the Placing Shares to trading on AIM and it is expected that AIM Admission will occur and that trading in the new ordinary shares will commence on AIM at 8.00 am on the 2th of March 2014. The Placing Shares will rank pari passu in all respects with the Company’s existing issued ordinary shares.
