Ferrum Crescent is considering its options over the potential development of the Moonlight project following the termination of the farm-in and joint venture agreement with Business Venture Investments No. 1709 (Proprietary).
BVI was entitled to earn up to a 43% equity interest in Ferrum Iron Ore (Proprietary) through the completion and full funding of a bankable feasibility study for the Moonlight iron project in Limpopo Province, in northern South Africa, which was to be conducted in two phases.
This was under an agreement between BVI, FIO and Ferrum South Africa (Proprietary) Limited, details of which were first announced by Ferrum Crescent on 14 October 2015.
On 14 January 2016, the company announced that it agreed to extend the timetable for BVI to complete phase 1 of the BFS but, as announced on 16 January this year, BVI failed to complete it by that extended deadline.
Consequently, and in accordance with the terms of the agreement, BVI has not earned any equity interest in FIO.
The agreement has now been formally terminated by FIO and FSA.
A statement said: “The company is considering its options in relation to the potential development of the Moonlight project, and will make further announcements as and when appropriate.”
At 8:18am: (LON:FCR) Ferrum Crescent Ltd share price was -0.03p at 0.17p
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