REG - Ferro-Alloy Rsrcs - Launch of Bond Programme /Listing of First Tranche

Ferro-Alloy ResourcesAnnouncement

27/07/2023 09:00

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RNS Number : 4103H  Ferro-Alloy Resources Limited  27 July 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").

 

27 July 2023

Ferro-Alloy Resources Limited

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

 

Launch of Bond Programme and Listing of First Tranche

 

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 launch of a new phased US$20 million exempt offer bond
programme valid until 31 July 2033 (the "Programme"). The Company has listed
the first tranche of the bonds under the Programme on the Astana International
Exchange ("AIX") with the ability to raise up to US$3 million initially.

Summary

·    The Company's previously issued bonds amounting to US$1.1 million
were redeemed at maturity in March 2023. Further to this redemption, the
Company has launched the Programme, which was approved by the AIX on 24 July
2023.

 

·    The highlights of the Programme are as follows:

o  The Programme will comprise one or more tranches of bonds, each listed on
the AIX;

o  The total nominal value of all tranches issued under Programme shall not
exceed US$20 million;

o  Each tranche of the Programme will be offered only to accredited investors
(as defined by 1.1.2(6)(a) of AIFC MAR Rules) based in Kazakhstan and governed
by the laws and regulations of the Astana International Financial Centre
("AIFC");

o  Bonds issued under the Programme will be denominated in either US dollars
or Kazakhstan tenge with interest payable to bondholders bi-annually;

o  All bonds issued will rank as unsecured debt obligations of the Company;
and

o  The applicable coupon rate, duration, issue price and other relevant terms
of any bonds issued under the Programme will be defined and determined by the
terms and conditions of each tranche of bonds issued.

 

First Tranche

·    On 27 July 2023, the Company listed the first tranche of bonds under
the Programme on the AIX ("the First Tranche") with the ability to raise up to
US$3 million.

 

·    A summary of the terms and conditions of the First Tranche is as
follows:

 

-      ISIN: KZX000001474

-      Specified currency: US Dollars

-      Face value: US$2,000

-      Number of bonds: 1,500 units

-      Total nominal amount of the bonds: US$3 million

-      Issue date: 27 July 2023

-      First date of trading: 28 July 2023

-      Last date of the circulation period: 26 July 2026

-      Maturity date: 27 July 2026

-      Coupon rate: 9.0% fixed of the nominal value of the bonds issued

-      Frequency of interest payments: twice a year, 27 January, and 27
July of each year, commencing on 27 January 2024

-      Coupon basis: 30 days in a month / 360 days in a year

 

·    Trading of the First Tranche of bonds will commence on 28 July 2023.
 

 

Commenting on the Programme, Nick Bridgen, CEO of Ferro-Alloy Resources said:

"The Programme will provide the Company with the opportunity to replace the
bonds that were repaid in March 2023, and provide the flexibility to make
further bond issuances to finance the acceleration of the Company's
development as required in the future."

 

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)

 

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 phases, Phase 1 and Phase 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 Phase 1, rising to 22,400 tonnes V(2)O(5) after
Phase 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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