TIDMFAR
RNS Number : 7371P
Ferro-Alloy Resources Limited
12 June 2020
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
12 June 2020
Ferro-Alloy Resources Limited
("Ferro-Alloy" or "the Company")
Operational and Financing Update
Ferro-Alloy Resources Limited (LSE:FAR), the vanadium mining and
processing company with operations based in Southern Kazakhstan
announces that, the Company has raised US$300,000 via the issue of
bonds on the Astana Stock Exchange ("AIX").
Issue of bonds
Investors have subscribed for 150 of the Company's bonds with a
nominal value of US$2,000 each. The bonds are unsecured, have a
three-year term, and bear interest of 7.5%, paid twice-yearly. The
bonds have been listed on AIX with identifier FAR.0323 and ISIN
number KZX000000336.
50 bonds have been issued with a maturity date of 5 June 2023,
and 100 bonds have been issued with a maturity date of 11 June
2023. The investors have the right to receive early repayment after
a minimum period of 12 months.
Production
Production from the hydrometallurgical process was re-started on
1 June 2020 so we now have significant production from both the
hydrometallurgical and pyrometallurgical process routes.
Daily overall production in the first 10 days of resumed
operations has been 69% higher than the average for the first
quarter of 2020, in spite of some continuing Covid-19 related
delays to the completion of commissioning of some of the new
equipment. We expect further significant rises in production over
the next few months as these issues are overcome.
Covid-19
The restart of hydrometallurgical production was delayed by the
closure of Shieli after a case of Covid-19 was discovered in the
town. This prevented our technical specialists from reaching site
until late in May so the decision was taken to delay the restart
until the beginning of the new staff rotation on 1 June 2020.
There remain some commissioning issues with newly installed
equipment that cannot be resolved by the equipment suppliers
because they cannot presently visit the site. The Company has
ordered the necessary parts independently of the manufacturers,
with delivery and installation expected over the next two
months.
The impact of the virus in Kazakhstan remains muted, with only
13,558 cases declared so far in spite of a significant level of
testing. In the Kyzylordinskoye region, where our operations are
situated, there have been just 484 declared cases and no deaths.
However, strict lock-down restrictions are applied from time to
time in cities or areas where cases arise.
Nick Bridgen, CEO, commented: "The issue of the bonds on these
terms is a big vote of confidence in the Company. With increasing
production from both the hydrometallurgical and pyrometallurgical
production facilities, we have a firm base which will let us focus
on the remaining expansion plans and the upgrade of the feasibility
study."
For further information, visit www.ferro-alloy.com or
contact:
Ferro-Alloy Resources Limited
Nick Bridgen, Chief Executive Officer info@ferro-alloy.com
Shore Capital (Broker)
Corporate Advisory: Toby Gibbs / Mark Percy / John More Tel: +44 (0)207 408 4090
Corporate Broking: Jerry Keen
VSA Capital (Financial Adviser) Tel: +44 (0)203 005 5000
Andrew Monk / Simon Barton
St Brides Partners Limited (Financial PR & IR Adviser)
Catherine Leftley / Priit Piip Tel: +44 (0)207 236 1177
Further information about Ferro-Alloy Resources Limited
The Company's operations are all located at the Balasausqandiq
Deposit in Kyzylordinskaya Oblast in the South of Kazakhstan.
Currently the Company has two main business activities:
a) the high grade Balasausqandiq Vanadium Project (the "Project"); and
b) an existing profitable vanadium concentrate processing operation (the "Existing Operation")
Balasausqandiq is a very large deposit, with vanadium as the
principal product, together with by-products of carbon, molybdenum,
uranium, rare earth metals, potassium, and aluminium. Owing the
nature of the ore, the capital and operating costs of development
are very much lower than for other projects.
A reserve on the JORC 2012 basis has been estimated only for the
first ore-body (of five) which amounts to 23 million tonnes, not
including the small amounts of near-surface oxidised material which
is in the Inferred resource category. In the system of reserve
estimation used in Kazakhstan the reserves are estimated to be over
70m tonnes in ore-bodies 1 to 5 but this does not include the full
depth of ore-bodies 2-5.
There is an existing concentrate processing operation at the
site of the Balasausqandiq Deposit. The production facilities were
originally created from a 15,000 tonnes per year pilot plant which
was then adapted to treat low-grade concentrates and is now in the
process of being expanded and further adapted to treat a wider
variety of raw materials.
The Company has already completed the first steps of a
development plan for the existing operation which is expected to
result in annualised production capacity increasing gradually to
around 1,500 tonnes of contained vanadium pentoxide. The
development plan includes upgrades to infrastructure, an extension
to the existing factory and the installation of equipment to
increase the throughput and to add the facilities to convert AMV
into vanadium pentoxide.
The strategy of the Company is to develop both the Existing
Operation and the Project in parallel. Although they are located on
the same site and use some of the same infrastructure, they are
separate operations.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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