THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT
FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
15 February 2024
Ferro-Alloy Resources
Limited
("Ferro-Alloy" or the "Group" or the "Company")
Sale of Third Tranche of
Exempt Offer Bond Programme
Ferro-Alloy Resources Limited
(LSE:FAR), the vanadium producer and
developer of the large Balasausqandiq vanadium deposit in Southern
Kazakhstan, is pleased to announce the sale
of all bonds issued under the US$5m third tranche (the "Third
Tranche") of the Kazakhstan exempt offer bond programme (the
"Programme").
Background
As previously announced, the Company
listed the Third Tranche of bonds under the Programme on 30 January
2024, for the development of the Balasausqandiq project including
front-end engineering.
The nominal value of the Third
Tranche was US$5m, with a nominal coupon rate of 11%, payable
quarterly, and a two and a half year maturity.
Sale / Proceeds
All bonds listed under the Third
Tranche have been sold and net proceeds of US$4.73m have now been
received by the Company.
Summary
The three tranches of bonds issued
and listed under the Programme to date have been sold, in
aggregate, for US$13m. Under the terms of the Programme, US$7m of
headroom remains for the issue of future tranches by the
Company.
For further
information, visit www.ferro-alloy.com or contact:
|
Ferro-Alloy Resources Limited
|
Nick Bridgen (CEO) / William
Callewaert (CFO)
|
info@ferro-alloy.com
|
|
Freedom Finance Global PLC
(Bond Underwriter)
|
Renat Syzdykov
|
+7 701 766 4865 /
ib@ffin.kz
|
|
Shore Capital
(Joint Corporate
Broker)
Liberum Capital Limited
(Joint Corporate Broker)
|
Toby Gibbs/Lucy Bowden
Scott Mathieson/John More
|
+44 207 408 4090
+44 20 3100 2000
|
|
St
Brides Partners Limited
(Financial PR & IR
Adviser)
|
Ana Ribeiro/Zoe Briggs
|
+44 207 236 1177
|
About
Ferro-Alloy Resources Limited:
The Company's operations are all
located at the Balasausqandiq deposit in Kyzylordinskoye 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 vanadium concentrate
processing operation (the "Existing
Operation")
Balasausqandiq is a very large
deposit, with vanadium as the principal product together with
several by-products. Owing to the nature of the ore, the capital
and operating costs of development are very much lower than for
other vanadium projects.
The most recent mineral resource
estimate for ore-body one (of seven) provided an Indicated Mineral
Resource of 32.9 million tonnes at a mean grade of 0.62%
V2O5 equating to 203,364 contained tonnes of
vanadium pentoxide ("V2O5"). 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 to 5 or the remaining ore-bodies
which remain substantially unexplored.
The Project will be developed in two
stages, Stage 1 and Stage 2, treating 1m tonnes per year and an
additional 3m tonnes per year. Production will be some 5,600 tonnes
of V2O5 from Stage 1, rising to 22,400 tonnes
V2O5 after Stage 2 is
commissioned.
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 expanded and adapted to recover
vanadium, molybdenum and nickel from purchased
concentrates.
The existing operation is located on
the same site and uses some of the same infrastructure as the
Project, but is a separate operation which will continue in
parallel with the development and operation of the
Project.