| Tue 31 Jan 2012, 9:00 | | FCR - Ferrum Crescent Limited - Appendix 5B mining exploration entity |
|
FCR
FCR
FCR - Ferrum Crescent Limited - Appendix 5B mining exploration entity
quarterly report
Ferrum Crescent Limited
(Previously Washington Resources Limited)
(Incorporated and registered in Australia and registered as an external
company in the Republic of South Africa)
(Registration number A.C.N. 097 532 137)
(External company registration number 2011/116305/10)
Share code on the ASX: FCR
Share code on AIM: FCR
Share code on the JSE: FCR ISIN: AU000000WRL8
("Ferrum Crescent" or "the company" or "the group")
APPENDIX 5B MINING EXPLORATION ENTITY
QUARTERLY REPORT
QUARTERLY ACTIVITIES AND CASHFLOW REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2011
Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in
northern South Africa, today announces its quarterly results for the three
month period ending 31 December 2011.
HIGHLIGHTS:
Moonlight Iron Ore Project:
- Appointment of South African geological advisory firm, Mineral Corporation
Consultancy (Pty) Ltd to:
- Complete an update of the resource estimate for the Moonlight iron ore
deposit (due by end of Q1 2012);
- Manage and oversee a drilling programme on the Julietta area; and
- Carry out a resource estimate in respect of the mineralisation on the
Julietta area (adjacent to the Moonlight deposit), with a view to publishing
an updated resource estimate for the entire Moonlight Project, including the
Julietta deposit, by Q3 2012.
- Mining Right Application expected to be granted in Q1 2012.
Corporate:
- Successful listing on the JSE in 11 November 2011.
- Cash as at 31 December 2011 is approximately A$4.6m
- Company fully funded for its currently planned work programmes.
MOONLIGHT IRON ORE PROJECT
The Company`s flagship project, the Moonlight Iron Ore Project, is located
on three farms (Moonlight, Julietta and Gouda Fontein) in Limpopo Province,
South Africa. It currently has a JORC compliant resource of 74Mt @ 33% Fe in
the Indicated Resource category and 225Mt @ 29% Fe in the Inferred Resource
category, which is situated entirely within the Moonlight farm. During the
quarter, The Mineral Corporation Consultancy (Pty) Ltd ("The Mineral
Corporation") was commissioned to carry out an updated JORC compliant
resource estimate taking into account the results of the phase 3 drilling
and assays on the Moonlight deposit ("the Report"). Phase 3 consisted of 11
holes totalling 990m of diamond core drilling and 13 holes totalling 1,600m
of reverse circulation drilling (RC) drilling. It is anticipated that the
Report, including the Julietta and Gouda Fontein exploration results and
resource estimate, will be completed by Q3 2012. As a result of the
appointment of a new mining adviser, the updated Moonlight Resource will be
released by the end of Q1 2012. The Mineral Corporation is currently
actively engaged in carrying out this part of its engagement.
The proposed drilling at the Julietta and Gouda Fontein farms adjacent to
the Moonlight deposit, will seek to confirm the magnetite mineralisation
previously drilled by South African Iron and Steel Industrial Corporation
("Iscor"). Iscor was the South African government-owned integrated iron and
steel company which is now owned by ArcelorMittal. It is anticipated that
upwards of 10,000m of drilling will be carried out, consisting of both RC
and core drilling. The purpose of the drilling is to establish a total
resource estimate for the deposit on all three farms. Planning for this
drilling program is well advanced.
MINING RIGHT APPLICATION
The Group`s mining right application, which was submitted in January 2011,
is expected to be completed in Q1 2012.
CORPORATE
On the 11th November 2011, the Company announced its successful admission to
the JSE Limited ("JSE").
The JSE inward listing was a necessary condition precedent to facilitate the
Company`s Black Economic Empowerment ("BEE") share exchange and investment
at a listed company level, complying with the objectives of the South
African Government`s Mineral and Petroleum Resources Development Act
("MPRDA") and the revised Mining Charter. Ferrum Crescent`s BEE partner,
Mkhombi Investments (Pty) Limited ("Mkhombi"), owns a 26% stake in the
Company`s South African operating subsidiary, Turquoise Moon Trading 157
(Pty) Limited ("TMT"). Mkhombi is a partner with significant industry
experience and also includes two women`s organisations and a community trust
representing local Limpopo communities affected by the Company`s Moonlight
Iron Ore Project. Mr Kofi Morna, who is a director of Mkhombi, is also a
director of Ferrum Crescent.
The JSE granted the Company a secondary listing of 298,691,705 shares,
representing the entire issued ordinary share capital of Ferrum Crescent, in
the "Basic Materials - Basic Metals - Industrial Metals & Iron - Iron &
Steel" sector under the abbreviated name "Ferrum" and share code "FCR". No
funds were raised through the JSE listing process and the Preliminary
Listing Statement is available on the Company`s website.
For further information, please visit www.ferrumcrescent.com or contact:
AUSTRALIA AND COMPANY ENQUIRIES:
Ferrum Crescent Limited
Ed Nealon T: +61 8 9380 9653
Executive Chairman
Robert Hair -T: + 61 414 926 302
Managing Director
UK ENQUIRIES:
Ocean Equities Limited (Broker)
Guy Wilkes T: +44 (0)20 7786 4370
Ambrian Partners Limited (Nominated Adviser)
Richard Morrison T: +44 (0) 20 7634 4764
Jen Boorer T: +44 (0) 20 7634 4859
Newgate Threadneedle (Financial PR)
Laurence Read/Beth Harris T: +44(0)20 7653 9855
SOUTH AFRICA ENQUIRIES:
Sasfin Capital
Sarah Williams/Leonard Eiser T+27 11 809 7500
COMPETENT PERSON`S STATEMENT
The information in this report is based on information compiled by Lindsay
Cahill, who is a Member of the Australasian Institute of Mining and
Metallurgy. Mr Cahill has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Mr Cahill is a consultant to the mining
industry. This report is issued with Mr Cahill`s consent as to the form and
context in which the exploration results appear.
QUARTER ENDED 31 December 2011
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows related to operating activities
1.1 Receipts from product sales and Current quarter Year to date (6
related debtors $A`000 months) $A`000
1.2 Payments for (a) exploration (396) (1,693)
& evaluation
(b) development
(c) production (980) (1,669)
(d) administration
1.3 Dividends received
1.4 Interest and other items of a
similar nature received 54 129
1.5 Interest and other costs of
finance paid
1.6 Income taxes paid
1.7 Other (provide details if - 2
material)
Net Operating Cash Flows (1,322) (3,231)
Cash flows related to investing
activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets
(5) (17)
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if
material)
Net investing cash flows (5) (17)
1.13 Total operating and investing
cash flows (carried forward) (1,327) (3,248)
1.13 Total operating and investing
cash flows (brought forward) (1,327) (3,248)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares,
options, etc.
1.15 Proceeds from sale of forfeited
shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other - share issue costs - (17)
Net financing cash flows - (17)
Net increase (decrease) in cash held (1,327) (3,265)
1.20 Cash at beginning of 6,145 8,114
quarter/year to date
1.21 Exchange rate adjustments to (146) (177)
item 1.20
1.22 Cash at end of quarter 4,672 4,672
PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS
PAYMENTS TO RELATED ENTITIES OF THE ENTITY AND ASSOCIATES OF THE RELATED
ENTITIES
Current quarter $A`000
1.23 Aggregate amount of payments to the
parties included in item 1.2
1.24 Aggregate amount of payments to the 216
parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
NON-CASH FINANCING AND INVESTING ACTIVITIES
2.1 Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did not involve
cash flows:
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest:
FINANCING FACILITIES AVAILABLE
Add notes as necessary for an understanding of the position
Amount available Amount used $A`000
$A`000
3.1 Loan facilities
3.2 Credit standby
arrangements
ESTIMATED CASH OUTFLOWS FOR THE NEXT QUARTER
$A`000
4.1 Exploration and evaluation 350
4.2 Development
4.3 Production
4.4 Administration 400
Total 750
RECONCILIATION OF CASH
Reconciliation of cash at the end of the quarter (as shown in the
consolidated statement of cash flows) to the related items in the accounts
is as follows:
Current Previous
quarter $A`000 quarter $A`000
5.1 Cash on hand and at 4,672 6,145
bank
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide
details)
Total: cash at end of 4,672 6,145
quarter (item 1.22)
CHANGES IN INTERESTS IN MINING TENEMENTS
Tenement Nature of Interest at Interest at end
reference interest beginning of quarter
(note (2)) of quarter
6.1 Interests in
mining tenements
relinquished, reduced
or lapsed
6.2 Interests in
mining tenements
acquired or increased
ISSUED AND QUOTED SECURITIES AT END OF CURRENT QUARTER
Description includes rate of interest and any redemption or conversion
rights together with prices and dates
Total Number Issue price per Amount paid up per
number quoted security (see note security
3) (cents) (see note 3)
(cents)
7.1 Preference +securities
(description)
7.2 Changes during quarter
(a) Increases through issues
(b) Decreases through returns
of capital, buy-backs,
redemptions
7.3 +Ordinary securities 298,691,705 292,246,705 Various Fully Paid
7.4 Changes during quarter
(a) Increases through issues
(b) Decreases through returns
of capital, buy-backs
7.5 +Convertible debt
securities (description)
7.6 Changes during quarter
(a) Increases through issues
(b) Decreases through
securities matured, converted
7.7 Options (description and Exercise Expiry date
conversion factor) 2,950,000 2,950,000 price 07 December
18,546,727 18,546,727 $0.0198 2013
$0.400 31 December
2013
7.8 Issued during quarter
7.9 Exercised during quarter
7.10 Expired during quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
31 January 2012.
(Company secretary)
Andrew Nealon
Notes
1 The quarterly report provides a basis for informing the market how the
entity`s activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information
is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in
respect of interests in mining tenements acquired, exercised or lapsed
during the reporting period. If the entity is involved in a joint venture
agreement and there are conditions precedent which will change its
percentage interest in a mining tenement, it should disclose the change of
percentage interest and conditions precedent in the list required for items
6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and
Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply
to this report.
5 Accounting Standards ASX will accept, for example, the use of
International Financial Reporting Standards for foreign entities. If the
standards used do not address a topic, the Australian standard on that topic
(if any) must be complied with.
Johannesburg, 31 January 2012
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)
Date: 31/01/2012 09:00:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
