Appointment of Joint Broker

RNS Number : 3920X

Ferrex PLC

19 November 2014

 

Ferrex plc / Index: AIM / Epic: FRX / Sector: Mining

19 November 2014

Ferrex plc ('Ferrex' or 'the Company')

Appointment of Joint Broker

Ferrex, the AIM quoted manganese and iron-ore development company focused in Africa, is pleased to announce the appointment of Beaufort Securities ('Beaufort') as Joint Broker to the Company with immediate effect.

Ferrex Managing Director Mr. Dave Reeves said, "I believe that Beaufort's knowledge and engagement with the retail sector, which forms a significant portion of our shareholder base, will assist the Company as it moves towards production at the Nayega Manganese Project in Togo."

**ENDS**

For further information and the full Admission document visit www.ferrexplc.com or contact the following:

Dave Reeves	Ferrex plc	+ 61 (0) 420 372 740
finnCap		[phone]
Joanna Weaving	Broking
Matthew Robinson	Corporate Finance
Beaufort Securities
Elliot Hance / Saif Janjua	Broking	[phone]
Felicity Edwards / Elisabeth Cowell	St Brides Media and Finance Ltd	[phone]

Notes

Ferrex plc is an AIM quoted, leading manganese and iron-ore exploration and development company in Africa.   The Company is focussed on advancing low capex deposits, which benefit from proximal established infrastructure, up the development curve and into production. Ferrex has a solid portfolio of assets including three primary projects: Nayega Manganese Project in Togo ('Nayega'), Mebaga Iron Ore Project in Gabon ('Mebaga'), and Malelane Iron Ore Project in South Africa ('Malelane').

At Nayega, Ferrex is currently conducting a Bankable Feasibility Study and expects award of the mining permit in 2014.  A Scoping Study indicates that Nayega could produce 250,000 tonnes per year of manganese concentrate at 38% with an initial capital expenditure of under $15m.  A Scoping study on a ferro manganese plant in Togo has also been concluded and shows a lowest quartile operation with robust economics. The company is focussed on bringing the mine into production on grant of the mining permit whilst advancing the ferro manganese studies.  

In parallel with this, Ferrex is focussed on proving up resources at its Mebaga concession in Gabon. A recent review has lead to the estimation of an exploration target comprising 90 to 150Mt @ 35 to 65% Fe (oxide target) and 550 to 900Mt @ 25% to 40% Fe (primary target) for Mebaga. The Oxide target will incorporate both DSO* and bBSO* material. Ferrex has recently completed an initial drill programme at Mebaga that has intersected significant widths of DSO and bBSO mineralisation.

The Company also holds the Malelane Iron Ore concession in eastern South Africa. A Scoping Study on Malelane has demonstrated its potential to produce 1.8Mtpa of beneficiated ore per year, with initial capital expenditure of $139m, a payback of 1.9 years, a Net Present Value of US$523m (10% discount rate) and a 16.6 year life-of-mine. 

Ferrex has 934M shares on issue on a fully diluted basis. The Directors have subscribed for and purchased approximately 28% of the issued share capital of the Company and are thus aligned with shareholders interests.

 

END

 

 

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