Ferro-Alloy Resources Ltd (LSE:FAR, FRA:5PE) plunged 19.3% to 3.7p after revealing that $8 million of bonds must be repaid in August, while also unveiling a series of strategic initiatives for its Kazakhstan operations.
The vanadium developer said $3 million is due by August 7 and a further $5 million by August 11. Another $5 million falls due in October, with the company "currently evaluating debt finance offers received to refinance this tranche and will announce the preferred option to the market in due course".
Ferro-Alloy said it planned to make the August repayments on the relevant due dates. It has secured $2 million through advance payments for future vanadium and molybdenum sales, alongside a $500,000 grant from the Kazakhstan Science Fund.
The update also included the appointment of Peter Secker as chief executive from mid-October, subject to finalising his contract. Current chief executive Nick Bridgen will become non-executive deputy chairman.
Ferro-Alloy said Secker has helped finance, build and commission five mines and has raised more than $2 billion of debt and equity during his career.
The company added that it has also applied for funding from several US government institutions and is discussing partnerships to supply vanadium to the US steel and defence industries.
The potential to recover yttrium from its Balausa project was also highlighted, with an estimated in-situ value at $4.6 billion over 20 years, based on current prices. However, the estimate is based on historical testing rather than a formal assessment under mining industry reporting standards. Recovery rates, extraction costs and downstream processing costs also remain uncertain.
