AIM News: Ferrex raises £2m through AIM listing

An African-focused company specialising in minerals mainly used to make steel has listed in a deal which will value it at £15.5 million.

Ferrex, which develops iron ore and manganese, has listed on London's alternative investment market (AIM), raising £2 million by listing new shares at 3p apiece.

With this money, Ferrex aims to expand its portfolio of iron ore and manganese projects in South Africa and Mozambique, the countries where most of its developments are based.

Ferrex is in an ideal position to capitalise on the rising world demand for steel - the main market for iron ore and manganese - with its mid-term production horizon, said the company's chief executive Dave Reeves.

Steel-feed commodities demand is growing quickly, mainly through China, and the outlook is good for a company producing such goods, said Mr Reeves.