The group posted a 1.9 billion US dollars loss for year ended 30 June 2013, after being on a profit in 2012 of 4.4 billion US dollars. This resulted in a headline loss of 60 US cents per share.
In an effort to acquire funding, they signed a binding letter of intent with the Oman based company, AAI, to invest in Ferrum Crescent[DATA FCR:Ferrum Crescent LTD.] on condition that certain provisions are met by the 30 November 2013.
Upon completion of the agreement, AAI will hold a 35 per cent stake in Ferrum Crescent’s Moonlight Ore Project for 10 million US dollars as well as invest a further 3.5 million US dollars in the on-going costs of Moonlight’s bankable feasibility study (BFS).
The project, which is based on the farms of Moonlight, Gouda Fontein and Julietta in Limpopo is the main operational focus for the company.
“The period saw us increase our knowledge of the Moonlight iron ore project in Northern South Africa,” said Ed Nealon, chairman of Ferrum Crescent.
In addition, the group also appointed Danieli, an international metal industry engineering company, to supply engineering processes to the BFS of Moonlight.
“The progress made on the BFS to date, proximity to infrastructure and the involvement of major industry names assisted us greatly in negotiations with potential development partners during the year,” added Nealon
“Moonlight is a very unique project with metallurgy that shows a very high grade iron product can be produced and shipped using existing rail infrastructure.”