REG - Ferro-Alloy Rsrcs - Exempt Offer Bond Programme - Second Tranche Sale

Ferro-Alloy ResourcesAnnouncement

17/10/2023 07:00

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RNS Number : 2869Q  Ferro-Alloy Resources Limited  17 October 2023

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").

 

17 October 2023

Ferro-Alloy Resources Limited

("Ferro-Alloy" or the "Group" or the "Company")

 

Sale of Second 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 second
tranche (the "Second Tranche") of the Kazakhstan exempt offer bond programme
(the "Programme").

 

Background

As previously announced, the Company listed the Second Tranche of bonds under
the Programme on 19 September 2023, to accelerate the development of the
Balasausqandiq project including front-end engineering.

 

The nominal value of the Second Tranche was US$5m, with a nominal coupon rate
of 10%, payable quarterly, and a three year maturity.

 

Sale / Proceeds

All bonds listed under the Second Tranche have been sold and net proceeds of
US$4.87m have now been received by the Company.

Trading of the Second Tranche of bonds on the Astana International Exchange
commenced on 20 September 2023.

Summary

The two tranches of bonds issued and listed under the Programme to date have
been sold, in aggregate, for US$8m. Under the terms of the Programme, US$12m
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        Renat Syzdykov                                 +7 701 766 4865 / ib@ffin.kz

 (Bond Underwriter)

 Shore Capital                     Toby Gibbs/Lucy Bowden                         +44 207 408 4090

 (Joint Corporate Broker)

 Liberum Capital Limited           Scott Mathieson/Kane Collings                  +44 20 3100 2000

 (Joint Corporate Broker)
 St Brides Partners Limited        Catherine Leftley/Ana Ribeiro                  +44 207 236 1177

 (Financial PR & IR Adviser)

 

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%
V(2)O(5) equating to 203,364 contained tonnes of vanadium pentoxide
("V(2)O(5)"). 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 V(2)O(5) from Stage 1, rising to 22,400 tonnes V(2)O(5) 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.

 

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