Ferrum Crescent missing second round of funding from AAI

30th May 2014 08:22

Ferrum Crescent shares sank after the iron ore developer said it had not received the second payment due from Anvwar Asian Investment (AAI).The financing is being used to complete its bankable feasibility study (BFS) on the Moonlight Iron Ore Project in South Africa.The group has so far received an initial payment of $0.5m, but said the second one of the same amount had not been made.AAI had made a request to delay the payment, although Ferrum refused to agree to this. Ferrum said it was holding discussions with AAI over the breach of contract and was "looking at financing options that will secure optimal partnerships for the completion of the BFS and beyond"."Moonlight is an advanced project, potentially capable of producing a high-grade iron ore pellet product, and is reviewing the use of established infrastructure for transportation," it continued. "Given the project's situation and stage of development and the premium product that it should be able to produce, the company believes that this is the best course of action for the company at this stage." The share price sank 21.27% to 0.65p by 08:30 on Friday.NR