TIDMFCR
RNS Number : 3087I
Ferrum Crescent Ltd
20 March 2018
20 March 2018
Ferrum Crescent Limited
("FCR", the "Company" or the "Group") (ASX, AIM, JSE: FCR)
Conditional Equity Fundraising to raise approximately GBP1
million (gross) for Toral Lead-Zinc Project, Spain
FCR, the European lead-zinc explorer, is pleased to announce
that it has conditionally raised, in aggregate, approximately GBP1
million (before expenses), through a proposed subscription and
placing of, in aggregate, 1,739,130,435 new ordinary shares of no
par value each in the capital of the Company ("Ordinary Shares") at
a price of 0.0575 pence per share (the "Issue Price") (the
"Fundraising"). The Fundraising comprises a placing of
1,608,695,652 new Ordinary Shares via the Company's joint broker,
Turner Pope Investments (TPI) Limited ("Turner Pope") as agent of
the Company, and a subscription for a further 130,434,783 new
Ordinary Shares, both at the Issue Price, with certain new and
existing investors.
The Fundraising is subject to the requisite shareholder approval
and, accordingly, the issue of the abovementioned new Ordinary
Shares is conditional on, inter alia, the passing of certain
resolutions by the Company's shareholders (the "Resolutions") at a
duly convened general meeting of the Company (the "General
Meeting"), notice of which will be set out in a notice of meeting
to be posted to shareholders shortly.
Use of Proceeds
The Fundraising will provide sufficient financing and general
working capital to progress the resource delineation and
commissioning of an initial scoping study in respect of the
Company's wholly owned Toral lead-zinc project, located in the
Province of Le n, northern Spain.
In particular, the net proceeds will enable FCR to build upon
the Toral project's maiden JORC (2012) zinc, lead and silver
resource estimate of 16Mt@6.9% Zinc equivalent (including lead
credits) and 25 g/t Silver, as announced on 6 February 2018, via
the completion of all key stage 1 work for 2018, including:
-- an 8 hole drilling programme East along strike to potentially
identify further scale for the resource;
-- an initial scoping study to better assess the Toral project,
detailing infrastructure requirements, potential mining
methodologies and marketing options; and
-- metallurgical test work on existing core samples to progress
the Company's understanding of likely, saleable concentrates from a
full mining operation.
An updated corporate presentation on the Company's Toral project
and its current development strategy is available at the following
link:
http://www.rns-pdf.londonstockexchange.com/rns/3087I_-2018-3-20.pdf
Further Details on the Fundraising
The new Ordinary Shares to be issued pursuant to the Fundraising
will be fully paid and will rank pari passu in all respects with
the Company's existing Ordinary Shares. The Issue Price represents
a discount of approximately 36.11 per cent. to yesterday's closing
mid-market price on AIM of 0.09 pence per Ordinary Share (being the
latest practicable business day prior to the date of this
announcement). Application will be made in due course for quotation
of the new Ordinary Shares on the Australian Securities Exchange
and the JSE Limited, and to the London Stock Exchange plc for
admission to trading on AIM with admission expected to occur
shortly following the General Meeting.
The Company will issue a further announcement in due course on
posting of the notice of meeting to provide formal notice of the
requisite General Meeting with respect to seeking shareholder
approval for, inter alia, the issue of the new Ordinary Shares
pursuant to the Fundraising, the issue of the placing options and
broker options in respect of the Company's previous fundraising
announced on 2 November 2017 and replenishment of the Company's
placement capacity under Listing Rule 7.1.
Proposed Change of Name
In order to better reflect the Group's primary focus on
lead-zinc and precious metals assets within the European region,
the Board also proposes that the Company's name be changed to
'Europa Metals Limited', and an appropriate resolution will be put
to shareholders at the forthcoming General Meeting to secure the
requisite shareholder approval to effect this change.
Commenting today, Myles Campion, Executive Technical Director of
FCR, said:
"The injection of significant additional capital will enable the
Company to move forward quickly and build on its recent maiden JORC
resource estimate for Toral. I look forward to commencing our new
2018 field season, reviewing approximately 44,000m of existing
core, conducting a new drill programme and embarking on a cost
effective metallurgical sampling programme, the results of which
will feed into a comprehensive initial scoping study."
Commenting today, Laurence Read, Executive Director of FCR,
said:
"Securing this additional funding will allow the Company to
commence a significant work programme to target additional
resources and assess the development options for Toral to
potentially become a fully operational mining concern in the
future. The metallurgical programme, in addition to the data from
the additional exploration work, will form the backbone of our
development strategy for Toral as we look to progress the project
towards a Bankable Feasibility Study and continue dialogue with a
series of potential industrial and strategic investment
partners."
For further information on the Company, please visit
www.fcrexploration.com or www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Daniel Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 8 9486 4036
Laurence Read, Executive Director (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker / Guy Peters
T: +44 (0)20 3621 4120
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930
Bravura Capital (Pty) Ltd (JSE Sponsor)
Melanie De Nysschen
T (direct): +27 11 459 5052
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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