REG - Ferro-Alloy Rsrcs - Issue of Equity

Ferro-Alloy ResourcesAnnouncement

14/11/2023 07:00

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RNS Number : 2914T  Ferro-Alloy Resources Limited  14 November 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").

 

14 November 2023

Ferro-Alloy Resources Limited

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

 

Conversion of Vision Blue Resources Loan Notes

Issue of Equity

 

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 conversion of the outstanding convertible loan notes
held by Vision Blue Resources Limited ("VBR") into 33,520,088  ordinary
shares of no par value ("Ordinary Shares") in the Company.

Background

As previously announced on 15 September 2022, the Company executed a
US$6,700,000 convertible loan note instrument (the "2022 CLN Instrument") and
issued US$4,200,000 of nil rate convertible loan notes (the "2022 Loan Notes")
to VBR (on substantially similar terms to the 2021 loan note instrument and
the loan notes that formed part of the initial investment financing between
VBR and the Company as announced on 28 June 2021).

 

The Company has received notice from VBR under the terms of the 2022 CLN
Instrument to convert the 2022 Loan Notes into Ordinary Shares (the
"Conversion Shares") in the Company.

 

Following the issue of the Conversion Shares, there are no further convertible
instruments outstanding in the Company, other than under the Company's share
option scheme.

Admission

Applications will be made to the Financial Conduct Authority for the
Conversion Shares to be admitted to the standard listing segment of the
Official List and to the London Stock Exchange for the Conversion Shares to be
admitted to trading on its Main Market for listed securities ("Admission"). It
is anticipated that Admission will become effective, and that dealings in the
Conversion Shares will commence at or around 8.00 a.m. on 20 November 2023.
The Conversion Shares will rank pari passu with the existing Ordinary Shares
in issue. The Conversion Shares will represent approximately 6.9 per cent. of
the Company's enlarged issued share capital in aggregate on Admission
(assuming no other issuance of Ordinary Shares prior to Admission).

Following the conversion of the loan notes for the new Ordinary Shares, VBR
will hold 111,071,783 Ordinary Shares representing 22.99 per cent. of the
issued share capital of the Company.

Total Voting Rights

Following Admission of the Conversion Shares the Company's issued ordinary
share capital will comprise 483,222,238 Ordinary Shares, with none held in
treasury, and therefore, the total number of Ordinary Shares in the Company
with voting rights will be 483,222,238. This figure may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under the
applicable legal and regulatory requirements.

For further information, visit www.ferro-alloy.com or contact:

 

 Ferro-Alloy Resources Limited     Nick Bridgen (CEO) / William Callewaert (CFO)  info@ferro-alloy.com

 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)

 

The notification below, made in accordance with the requirements of the UK
Market Abuse Regulation, provides further detail.

Notification and public disclosure of transactions by persons discharging
managerial responsibilities and persons closely associated with them

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Vision Blue Resources Limited

 2    Reason for the notification

 a)   Position/status                                              Vision Blue Resources Limited is a PCA of Ferro Alloy Resources Limited's

                                                            Chairman, Sir Mick Davis, who is a person discharging managerial
                                                                   responsibilities

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Ferro Alloy Resources Limited

 b)   LEI                                                          2138003T5CF6U9W7Z780

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Conversion of 2022 Convertible Loan Notes for Ordinary Shares

      Identification code                                          ISIN: GG00BGDYDZ69

 b)   Nature of the transaction                                    Conversion of 2022 Convertible Loan Notes

 c)   Price(s) and volume(s)                                       Price    Volume

                                                                 9pence  33,520,088

 d)   Aggregated information

      - Aggregated volume                                          Aggregated volume: N/A

      - Price                                                      Aggregated price: N/A

 e)   Date of the transaction                                      13 November 2023

 f)   Place of the transaction                                     Outside a trading venue

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

 

 

Aggregated volume: N/A

 

Aggregated price: N/A

e)

 

Date of the transaction

 

13 November 2023

f)

 

Place of the transaction

 

Outside a trading venue

 

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.

About Vision Blue Resources Limited:

Vision Blue was founded in December 2020 by Sir Mick Davis to create a
portfolio of strategic and high returning investments in clean energy related
metal and mineral resource companies essential to the clean energy transition.

Vision Blue invests in undervalued and undercapitalised mining and processing
companies in established mining jurisdictions that are strategically important
for customers; with well defined, advanced, scalable assets and committed
management; that have low logistics, processing and technological risks with a
clear path to new or expanded production; that have direct exposure to clean
energy generation, storage and related infrastructure; and that are
implementing a best-in-class ESG framework.

 

 

 

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