Audio Interview with MD Dave Reeves

RNS Number : 9172V

Ferrex PLC

19 December 2013

 



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

19 December 2013

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

Audio Interview - Anglo American and Kumba Iron Ore Agreement for the Mebaga Project in Gabon

Ferrex plc, the AIM quoted iron ore and manganese development company focused in Africa, announces that an audio interview with Ferrex's Managing Director, Dave Reeves is available for download. The interview discusses the binding Term Sheet signed today with major mining company Anglo American plc and Kumba Iron Ore (Pty) Ltd, a leading supplier of iron ore and member of the Anglo American group, to fund and advance Ferrex's Mebaga DSO Iron Ore Project in Gabon, West Africa.  In addition, he will discuss the recent placing which will be utilised to advance the Company's additional low capex iron ore and manganese deposits in Africa towards production.

To download the following interview Dave Reeves please click on the following link http://bit.ly/FerrexDec13, or go the Company's website http://www.ferrexplc.com/podcasts.aspx. 

**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]
Elizabeth Johnson / Joanna Weaving	Broking
Matthew Robinson / Ben Thompson	Corporate Finance
Felicity Edwards/ Elisabeth Cowell	St Brides Media and Finance Ltd	[phone]

Notes

Ferrex plc is an AIM quoted, leading iron-ore and manganese 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: Mebaga Iron Ore Project in Gabon ('Mebaga'), Nayega Manganese Project in Togo ('Nayega'), and Malelane Iron Ore Project in South Africa ('Malelane').

Ferrex is focussed on proving up resources at its Mebaga concession in Gabon, where it has signed a binding Term Sheet with major mining company Anglo American plc and Kumba Iron Ore (Pty) Ltd, a leading supplier of iron ore and member of the Anglo American group, to fund and advance the project for a two year period. 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 completed a diamond drill programme and a 2014 drill exploration programme is being planned to focus on understanding the true potential of Mebaga.

At Nayega, Ferrex is currently conducting a Definitive Feasibility Study. An initial 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.   The Company anticipates that cash generated from production at Nayega will be used to assist in the future funding of development of Ferrex.  

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.  Conceptually, cash generation from Nayega and Mebaga will be utilised to obtain finance for Malelane once again limiting share dilution.

Ferrex has 805m shares on a fully diluted basis. The Directors have subscribed for and purchased approximately 32% of the issued share capital of the Company and are thus aligned with shareholders interests.

 

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