Business
Strategic Investment & Appointment of Chairman
Strategic Investment & Appointment of Chairman.
About this update from Ferro-alloy Resources Ltd.
[{"type":"text","content":"\n \n \n \n RNS Number : 2330S\n Ferro-Alloy Resources Limited\n 15 March 2021\n \n \n \n \n \n This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which is part of \n \n \n UK law by virtue of the European Union (Withdrawal) Act 2018.\n \n \n \n \n 15 March 2021\n \n \n Ferro-Alloy Resources Limited ('the Company' or 'FAR')\n \n \n Strategic Investment by Vision Blue Resources and proposed appointment of Sir Mick Davis as Chairman\n \n \n \n \n \n Ferro Alloy Resources Limited (LSE: FAR), \n the vanadium mining and processing company with operations based in Southern Kazakhstan,\n is pleased to announce that it has today entered into a subscription agreement (\"Subscription Agreement\") for up to US$12.6m with Vision Blue Resources (\"Vision Blue\" or \"VBR\"), a company led and founded by former Xstrata CEO Sir Mick Davis, and a limited number of co-investors (\"Co-Investors\"). Sir Mick Davis will join the Company's board as Chairman following completion of the Initial Investment outlined in the Subscription Agreement.\n \n Chris Thomas, current Chairman of FAR, will resume the role of Non-Executive Director on Sir Mick Davis's appointment.\n \n \n Highlights\n \n \n · \n Total funding package of up to US$12.6m at a subscription price of 9 pence per share (the \"Issue Price\") comprises:\n \n \n o \n An initial investment in two stages of up to US$3.1m by VBR, a company led by Sir Mick Davis, and the Co-Investors including Tony Trahar, former CEO of Anglo American plc (the \"Initial Investment\")\n \n \n o \n Further investment rights granted to VBR of up to US$9.5m at the Issue Price (the \"Further Investment Rights\")\n \n \n · \n Transaction structure provides a pathway to VBR to acquire 21.29% of FAR for U$11.5m of the total funding package\n \n \n · \n Proceeds of the total funding package will be used to:\n \n \n o \n Complete the expansion of the existing, cashflow generating, processing facilities\n \n \n o \n Complete the Bankable Feasibility Study (\"FS\")\n \n on the Company's large scale, low cost Balasausqandiq Vanadium Project (\"Balausa Project\")\n \n \n · \n Establishment of a strategic relationship with VBR through:\n \n \n o \n Additional future investment rights tied to construct...