Ferrum Crescent Ltd Placing to raise approximately £550,000 gross (5146R)
December 12 2016 - 1:00AM
UK Regulatory
TIDMFCR
RNS Number : 5146R
Ferrum Crescent Ltd
12 December 2016
12 December 2016
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX, AIM, JSE:
FCR)
Placing to raise approximately GBP550,000 gross
Ferrum Crescent, the ASX, AIM and JSE quoted metals project
developer, is pleased to announce that it has conditionally raised
approximately GBP550,000 before expenses, through a placement via
Beaufort Securities Limited ("Beaufort Securities") as agent of the
Company, of 275,218,025 new ordinary shares of no par value each in
the capital of the Company (the "Placing Shares") at a price of 0.2
pence per new ordinary share (the "Placing").
The Placing is conditional on admission of the Placing Shares to
trading on AIM ("Admission"). Following Admission, the Placing
Shares will represent, in aggregate, approximately 13 per cent. of
the Company's enlarged issued ordinary share capital.
Shareholder approval is not required as the share issues fall
within the Company's placement capacity under ASX Listing Rule
7.1.
Use of Proceeds
The Company intends to utilise the net proceeds from the Placing
for the Group's general working capital purposes and expenditure on
its two principal metals projects:
-- Moonlight iron ore project, South Africa:
- Supporting the Mining Right licence obligations and progressing development pathways.
-- Toral lead-zinc project, Spain (acquired 2016, major
reinterpretation of data package underway):
- Continuation of field-work (mapping, sampling, re-logging core) and finalisation of drill plan
- Phase 1 drill programme
- Petrographic studies (for metallurgical characterisation) of mineralisation
Application to trading on AIM
Application will be made for quotation of the Placing Shares on
the Australian Securities Exchange and the JSE Limited, and to the
London Stock Exchange plc for Admission. It is expected that
Admission will become effective and that dealings in the Placing
Shares will commence on AIM at 8.00 a.m. on 23 December 2016. The
Placing Shares will be fully paid and will rank pari passu in all
respects with the Company's existing ordinary shares.
Following Admission, the total issued ordinary share capital of
the Company will comprise 2,144,620,178 ordinary shares.
The Placing Shares have been conditionally placed by Beaufort
Securities, as agent of the Company, with certain existing and new
institutional and other investors pursuant to a placing agreement
(the "Placing Agreement"). Under the terms of the Placing
Agreement, Beaufort Securities will receive commission from the
Company conditional on Admission of the Placing Shares and the
Company will give customary warranties and undertakings to Beaufort
Securities in relation, inter alia, to its business and the
performance of its duties. In addition, the Company had agreed to
indemnify Beaufort Securities in relation to certain liabilities
that it may incur in undertaking the Placing. Beaufort Securities
has the right to terminate the Placing Agreement in certain
circumstances prior to Admission, in particular in the event that
there has been, inter alia, a material breach of any warranties.
The Placing is not being underwritten.
Commenting today, Justin Tooth, Executive Chairman of Ferrum
Crescent, said:
"With the encouraging and valued support of our shareholders,
this oversubscribed placement allows us to progress our strategy
and our metals portfolio swiftly and therefore cost effectively. I
look forward to updating the market in due course on our iron ore
and lead-zinc projects."
For further information on the Company, please visit
www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and Company Secretary T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative) T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler T: +44 20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance T: +44 20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh T: +27 11 459 5037
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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