FE raises cash for Tennant Creek buy

  • Sunday, September 26, 2021
  • Source:ferro-alloys.com

  • Keywords:FE
[Fellow]FE raises cash for Tennant Creek buy

【Ferro-alloys.com】The ASX-listed company has struck a deal with Gecko Mining Company (GMC) to acquire the majority interest in its tenement package, at Tennant Creek, in exchange for A$5-million in cash, 85-million FE shares, and a further 75-million FE unlisted options, exercisable at 10c each and with a three-year expiry date.

FE has also agreed the pay the first A$10-million of expenses incurred at the joint venture (JV) area.

The tenements span some 240 km2 in the highly prospective Gecko-Goanna copper-gold corridor, which has historically produced more than 5.5-million ounces of gold and 488 000 t of copper.

“Mature copper / gold assets are hard to find in today’s market given the attractive thematic for those commodities, particularly for copper with its connection into the battery metals space. We are pleased to identify this opportunity to diversify our commodity exposure to supplement our high grade iron ore at Wiluna and our other Northern Territory iron-ore project Yarram, which is located just over 100km from Darwin port, which presents the opportunity for it to host a low cost operation,” said FE executive chairperson, Tony Sage.

“The work that’s been done by since on the GMC ground since the project was acquired from Evolution Mining in 2020 has identified some interesting opportunities for us to evaluate with the potential to fast track production, so we look forward to our team taking these concepts forward in the fast and cost efficient manner we have demonstrated at JWD.”

To fund the acquisition, FE would place some 100-million shares, at a price of 5c each, to sophisticated investors, raising A$5-million. The placement will be conducted under the company’s existing placement capacity, and will not require shareholder approval.

“We are very pleased with the support from existing and new shareholders for this capital raising, which was oversubscribed in a volatile market. This funding puts us in a strong position to continue to progress our exciting suite of projects,” said Sage.

  • [Editor:zhaozihao]

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