Ferro-Alloy Resources (LSE:FAR) has raised £4.68 million through a placing of 137.6 million new shares, with the proceeds primarily intended to repay debt due under its Kazakh bond programme.
Strategic investor Vision Blue Resources participated in the fundraising and will increase its holding in Ferro-Alloy to 26.24%.
The transaction resulted in a related-party review, with the company’s independent directors determining that the terms were fair.
Ferro-Alloy said the majority of the proceeds will be used to repay Tranche 2 of its Kazakh bond programme. Following the repayment, the company will have no further bond maturities during 2026.
A final US$5 million tranche is due to mature in November 2027. Ferro-Alloy intends to refinance that obligation through project-related debt, although the refinancing remains prospective.
The balance of the placing proceeds will be used for working capital and to progress the company’s rare earth elements strategy.
Ferro-Alloy said it is holding discussions with major government financing institutions amid interest from the US in its rare earth elements activities. No financing resulting from those discussions was specified in the supplied information.
Following admission of the new shares to trading on the London Stock Exchange’s Main Market, Ferro-Alloy’s issued share capital will increase to approximately 893.0 million shares.
About Ferro-Alloy Resources
Ferro-Alloy Resources is a vanadium producer and developer of the Balasausqandiq deposit in southern Kazakhstan.
Vanadium is the principal planned product from Balasausqandiq, alongside CBS carbon material and other by-products. The company is also evaluating opportunities associated with rare earth elements.
Ferro-Alloy operates an existing concentrate processing plant and research and development centre as it progresses development of the Balasausqandiq project.
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