Ferrex Secures ?500,000 Loan

RNS Number : 1850U

Ferrex PLC

21 December 2012

 

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

21 November 2012

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

Ferrex Secures £500,000 Loan

Ferrex plc, the AIM quoted iron ore and manganese development company focused in Africa, is pleased to announce that it is issuing a Working Capital Facility (the "Facility") for which it has received commitments for £500,000, available to be drawn down in whole or in part at the Company's election.  Proceeds will be applied to the Company's portfolio of iron ore and manganese assets in South Africa and Togo, and to provide working capital.

Loan Note Instrument

The key terms of the funding facility are as follows:

Funding facility	The Facility comprises unsecured notes totalling a principal amount of up to £500,000
Maturity date	The Facility will mature on 31 November 2013 when any amounts outstanding will be repayable.
Interest	Interest is payable monthly in arrears at a fixed rate of 7.5% per annum, on the then outstanding principal amount.

David Reeves and James Carter have provided commitments to meet the Facility which if drawn would constitute a related party transaction under the AIM Rules for Companies.  The Company's independent directors, having consulted with the Company's Nominated Adviser, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

**ENDS**

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

Dave Reeves	Ferrex plc	[phone]
Felicity Edwards/ Elisabeth Cowell	St Brides Media and Finance Ltd	[phone]
finnCap		[phone]
Elizabeth Johnson / Joanna Weaving	Broking
Matthew Robinson / Henrik Persson	Corporate Finance

Notes

Ferrex plc is an AIM quoted exploration and development company focused on advancing low capex iron ore and manganese projects in Africa through the development cycle and into production.  Our current property portfolio comprises iron ore (Malelane) and manganese (Leinster) projects in South Africa and a manganese project (Nayega) in Togo, all of which offer the potential for significant near-term value uplift.

The Company's growth strategy is centred on advancing its current assets, utilising its Board and management team's considerable experience in developing resource projects across Africa and expanding its portfolio through acquisitions to build Ferrex into a mid-tier, low-cost producer of iron ore and manganese.

 

END

 

 

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