Ferrex Raises $1.28 Million Through New Ordinary Shares

Ferrex plc (LSE:FRX) announced it has raised GBP850,000 (US$1,286,774) before expenses through the placing of 127,500,000 new ordinary shares and subscription of 39,500,000 new ordinary shares.

Some highlights in the press release include:

• Proceeds will be used to provide working capital as Ferrex moves towards finalizing full financing for the construction of its 250,000tpa Nayega Manganese Project in Togo (‘Nayega’)
• Finalised an accelerated startup production plan for Nayega that will provide manganese ore production and near term cash flow within eight months of commencement of works
• Shares issued from existing shareholder authorities
• Support from new and existing shareholders and Board participation by way of subscription, further aligning the Directors with Ferrex shareholders

CEO of Ferrex, Dave Reeves, commented:

We are delighted to have received such strong support from our shareholders for this Placing. With these funds secured we will be well positioned to fully examine all financing options for the accelerated construction of our flagship Nayega manganese project as we progress towards an initial production, currently anticipated at the beginning of 2016, subject to finalize the Mining Convention and secure the Mining Permit. We are in discussions with numerous interested parties in respect to the funding of Nayega as a low-capex, open pit, 250,000tpa manganese mining operation. We look forward to providing further updates on this in due course, including finalization of funding, as we announce the next stages of development and mine construction for Nayega.

Click here to read the full Ferrex plc (LSE:FRX) press release.