Emerging Metals Limited Ferrum Resources Limited ("Ferrum") Update (9792M)
August 24 2011 - 10:16AM
UK Regulatory
TIDMEML
RNS Number : 9792M
Emerging Metals Limited
24 August 2011
For Immediate Release: 24 August 2011
Emerging Metals Limited
("EML" or the "Company")
Ferrum Resources Limited ("Ferrum") Update
The Company is pleased to provide an update on its due diligence
into Ferrum, its 37.23 per cent associate company and in particular
the obligations of Ferrum in respect of its exploration rights in
Sierra Leone, Guinea and Cameroon.
As announced on 7 June 2011, the US$13.5 million paid by Ferrum
for its 63.53 per cent. interest in CMC Guernsey Limited (which
indirectly holds a 95 per cent. interest in six iron ore
exploration licences in Cameroon), together with an additional
US$1.5 million in cash subscriptions received by CMC Guernsey
Limited, will be applied initially towards a high resolution
aero-mag survey of the licence areas and thereafter as CMC Guernsey
Limited judges warranted after that survey. It is believed that the
gross proceeds of US$15 million raised by CMC Guernsey Limited will
fully fund its initial exploration programme for the six
licences.
In Sierra Leone and Guinea, Ferrum also intends to conduct
aero-mag surveys on its licence areas, as well as additional
geological and reconnaissance mapping. Ferrum has estimated these
two work programmes, including in country operating and capital
costs and consultants, will cost in aggregate approximately US$2.5
million over the next six months. It is necessary for Ferrum to
commence these work programmes to maintain its rights to the
licence areas in good standing which it believes are highly
valuable.
Given current market conditions, the Company has determined that
it will presently not exercise its option to acquire the 62.77 per
cent. of issued Ferrum shares which it does not already own. The
Company is meanwhile exploring options to fund Ferrum's short term
cash requirements. It is currently expected that this will involve
a placing by way of new ordinary shares in the Company to parties
including certain directors. A further announcement in this regard
will be made in due course.
-Ends-
For further information
Emerging Metals Religare Capital Evolution GTH
Limited Markets (UK) Securities Communications
Limited Limited
Denham Eke Peter Romil Patel Toby Hall
Trevelyan-Clark Tim Redfern Christian Pickel
Emily Staples
+44 (0) 1624 +44 (0) 20 7444 +44 (0)20 7071 +44 (0) 20 3103
639396 0800 4300 3902
This information is provided by RNS
The company news service from the London Stock Exchange
END
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