Ferro-Alloy Resources raises funds to repay bonds, develop vanadium deposit
Ferro-Alloy Resources, a Guernsey-registered company listed on the London Stock Exchange (LSE) and the Astana International Exchange (AIX), has raised £4.7 million through a share issue. The proceeds will be used to repay bonds and develop the Balasausqandiq vanadium deposit in southern Kazakhstan, according to Finmentor.kz, citing a company statement.
Ferro-Alloy Resources issued 137.65 million new shares at 3.4 pence each — a 23.1% discount to the closing price — on the LSE and the AIX. The placement was conducted without brokers.
Overall, the company raised £4.7 million, or approximately $6 million. The lion’s share of the proceeds — £3.78 million (about $5 million) — will be allocated to fully repay the principal amount owed to holders of the second bond tranche under its $20 million Kazakhstan bond issuance program. The company had already repaid the first and third tranches of this issue in August. The final $5 million tranche is due for repayment in November 2027; the company plans to refinance it through new debt linked to the financing of its main project.
Another £897,000 ($1.19 million) will go toward the company’s operational needs, including the development of its rare-earth business segment. The company is negotiating with major U.S. state-backed financial institutions to secure funding for a project to extract rare-earth metals — specifically yttrium — from ore mined at the Balasausqandiq deposit.
Meanwhile, Vision Blue Resources — a strategic investor in Ferro-Alloy Resources linked to the company’s Chairman Mick Davis — has invested £1.25 million in the new share placement. As a result, its stake in the company has risen to 26.24%.
Once the company settles its current debts, the next phase will be securing financing to develop the deposit itself.
In late September, Ferro-Alloy Resources reached an agreement with the U.S.-based Maglut Heavy Industries regarding the potential supply of rare-earth concentrate. Extracting metals from the ore will enable the company to generate additional revenue by selling rare-earth metals in the U.S.
