TIDMFCR
RNS Number : 3692V
Ferrum Crescent Ltd
02 November 2017
2 November 2017
Ferrum Crescent Limited
("FCR", the "Company" or the "Group") (ASX, AIM, JSE: FCR)
Placing to raise approximately GBP185,250 (gross) and issue of
Options
FCR, the European lead-zinc explorer, announces that it has
conditionally raised approximately GBP185,250 before expenses,
through a placement via Beaufort Securities Limited ("Beaufort
Securities") as agent of the Company, of 370,499,858 new ordinary
shares of no par value each in the capital of the Company (the
"Placing Shares"), at a price of 0.05 pence per new ordinary share,
together with the issue of 185,249,929 options (the "Placing
Options") exercisable at a price of 0.075 pence per new ordinary
share for a period of thirty months from the date of issue (the
"Placing").
The Placing has been conducted with Mr Colin Bird and certain of
his associates, including African Pioneer Plc (together, the
"Investor Group"). FCR believes that an alignment with a strategic
shareholder group of this calibre will enable the Company to derive
additional value from its ongoing exploration work, focussed on its
wholly owned Toral lead-zinc project in Spain. The Company expects
to benefit from having such a new supportive strategic shareholder
group on its register, providing significant exploration expertise
and with a historical track record in value creation.
Mr Colin Bird, who has participated in the Placing in a private
capacity, has been involved with a series of publicly quoted mining
companies including Kiwara Plc, which was sold to First Quantum
Minerals (TSX: FM) for US$260 million in November 2009, whilst its
project was undertaking infill drilling at the Kalumbila
copper-nickel deposit in northwestern Zambia.
The Investor Group has conditionally agreed to subscribe for a
total of 370,499,858 Placing Shares, at a price of 0.05 pence per
share, to raise approximately GBP185,250 (gross). Following these
subscriptions, the Investor Group will hold, in aggregate,
370,499,858 ordinary shares, representing approximately 12.13 per
cent. of the Company's enlarged issued ordinary share capital.
The Placing is conditional on, inter alia, admission of the
Placing Shares to trading on AIM ("Admission"). The issue of the
Placing Shares falls within the Company's existing placement
capacity under ASX Listing Rule 7.1, such that specific shareholder
approval is not required.
Use of proceeds
The Company intends to utilise the net proceeds from the Placing
to support its ongoing lead-zinc exploration programme in North
West Spain and for general working capital purposes. As announced
on 17 October 2017, the Company is currently working with an
independent resource consultant to prepare a maiden JORC (2012)
resource estimate for its Toral lead-zinc project, which is
currently expected to be completed by the end of 2017.
Issue of options
In addition to the abovementioned issue of 185,249,929 Placing
Options, the Company has agreed to issue a further 50,000,000
options to Beaufort Securities Limited, exercisable at a price of
0.075 pence per new ordinary share, for a period of thirty months
from their date of issue (the "Broker Options").
The issue of both the Placing Options and the Broker Options is
subject to shareholder approval at a General Meeting of the
Company, to be convened shortly.
Application to trading
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 8 November 2017. 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 3,055,281,439 ordinary shares.
Commenting today, Laurence Read, Executive Director of FCR,
said:
"We are pleased to have received the backing of Colin Bird and
his associates. Colin has a significant track record of delivering
value for shareholders from the exploration, sale, development and
operation of mining projects. By placing the Company's equity with
such an investor group, I believe that FCR can leverage meaningful
value from the ongoing exploration of its promising Toral lead-zinc
asset in Spain.
"The Company's strategy remains focused on cost-effectively
defining economically-attractive lead-zinc assets at a time when
zinc demand is at a significant high. Our objective is to define a
maiden JORC (2012) resource estimate for Toral by the end of
2017."
Commenting today, Colin Bird said:
"I am pleased to have supported this financing together with my
associates in a material way. We back the existing management of
FCR and look forward to sharing our ideas with the Board, working
towards the Company's future development."
For further information on the Company, please visit
www.ferrumcrescent.com or www.fcrexploration.com or contact:
Ferrum Crescent Limited
Grant Button, Chairman (Australia)
T: +61 8 9474 2995
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
Beaufort Securities Limited (Broker)
Elliot Hance
T: +44 (0)20 7382 8300
Peterhouse Corporate Finance Limited (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
IOEZMMGMRZNGNZG
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November 02, 2017 04:33 ET (08:33 GMT)
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