Ferrum Crescent soars on South African sale plans

Shares in Ferrum Crescent jumped 25% after the iron group signed a memorandum of understanding to sell a 39% stake in the Moonlight Iron project in South Africa.

The deal, signed with South African investment company Principle Monarchy Investments, will see Ferrum Iron Ore Ltd, a 97%-owned subsidiary of Ferrum Crescent which owns the Moonlight project, conduct a placing of shares.

The London-listed company said the proceeds of the deal, which are expected to be in the region of £12m, will be used to finance a feasibility study at the project.

"We have now secured a highly credible partner within South Africa to fund the key elements of the bankable feasibility study for the Moonlight Iron Project," said group managing director Tom Revy.

Ferrum shares were up 25% to 0.750p at 14:39 on Tuesday.