[miningmx.com] — IRON ore junior Ferrox Holdings has appointed
HSBC as its financial adviser regarding the raising of capital for the development of
the group’s Tivani project in Limpopo.
Ferrox is nearing completion of all pre-production matters, which would enable
construction to begin of an iron ore concentrator with a capacity of 11.0Mt of run-of-
mine ore annually, producing 2.5Mt of concentrate annually at full production.
“HSBC will lead in any and all capital raising undertaken by Ferrox inclusive of
capital raises necessary to commence mining, achieve full concentrate production
[estimated at $450m] and the construction of facilities to support additional
beneficiation processes, which may include an iron/steel smelting facility [estimated
at an additional $1.2bn],’ read a company statement.
The potential smelting facility is projected to produce 1.5Mt per annum of pig iron or
steel, along with titanium and vanadium slag within 48 to 60 months of regulatory
approval.
Ferrox said concentrate production will commence within the next 24 to 36 months,
with annual full production in 36 to 48 months. The company was also evaluating
the production of 500,000 to 800,000 tonnes per annum of ilmenite concentrate for
the production of titanium dioxide.
“The mandate letter executed with HSBC is a tremendous, positive development for
Ferrox and furthers the bringing into production of our Tivani Project,’ said CEO
David McAdam. “With a financial adviser of the exceptional caliber of HSBC,
bringing its worldwide resources in support of the Tivani project, we believe the final
pieces necessary for the start of concentrator construction and mining are within
ready reach of Ferrox.’
The announcement came after Ferrox executed an MOU with Mboweni Brothers
Investment Holdings in January to acquire an interest of up to 20% in Ferrox for
$32m.
