Kerman & Co advised Emerging Metals in their recent acquisition of 37.23% of Ferrum Resources for US$8 million. As part of the transaction Emerging Metals made a bridging loan to Ferrum of US$7 million. Jim Mellon and Denham Eke, directors of the Company, have been appointed as directors of Ferrum, with Mr Mellon taking the role of interim Chairman.
Ferrum used the proceeds of the subscription and the bridging loan for the purpose of its proposed investment in CMC Guernsey. The proposed subscription will constitute 63.53% of its issued shares of CMC Guernsey for a cash consideration of US$13.5 million. If successful this transaction will allow Ferrum to acquire interest in six licenses in an emerging iron ore province in Cameroon, West Africa - representing an extensive lease area of approximately 6,000 sq. km. The area is ideally located with both a potential to discover and develop world class iron ore deposits and neighbouring explorers who are already at an advanced development stage.
Michael Corcoran, an Associate Partner from the Corporate department, advised Emerging Metals in these transactions.
