Ironveld PLC Placing to raise £400,000 (6926H)
November 19 2018 - 2:00AM
UK Regulatory
TIDMIRON
RNS Number : 6926H
Ironveld PLC
19 November 2018
19 November 2018
Ironveld plc ("Ironveld" or the "Company")
Placing to raise GBP400,000
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium
and Titanium project ("the Project") located on the Northern Limb
of the Bushveld Complex in Limpopo Province, South Africa, is
pleased to announce that it has raised GBP400,000 before expenses
through a placing of 24,242,420 new ordinary shares of 1p each at a
price of 1.65 pence each (the "Placing").
Highlights:
-- Placing to raise gross proceeds of GBP400,000 through the
issue of 24,242,420 Placing Shares at a price of 1.65 pence
each.
-- Proceeds of the Placing will be used to fund the purchase of
a secondary gyratory crusher and magnetic separation equipment that
will be used to process the Company's magnetite ore in order to
meet offtake specifications set by a potential off-take partner for
commercial scale testing and for general working capital
purposes.
-- The required ore has been mined and 1,000 tons have already
been shipped to the potential off-take partner. The equipment to be
acquired will allow for a significant increase in the shipment
rate.
-- The Company is being paid for the commercial sample and is
hopeful that successful testing could result in a long-term offtake
agreement.
-- SVS Securities plc acted as sole Placing Agent in connection with the Placing.
Peter Cox, CEO of Ironveld, said:
"I am delighted that we have been successful in raising these
funds to enable the purchase of equipment that will also us to meet
the specifications of the ore that we are able to supply. We are
hopeful that the successful delivery of the ore we are supplying
through the sampling programme with our potential off-take partner
will lead to a longer term agreement, ultimately generating
significant revenue for the Company."
"The Company's Project has a vast resource containing 27 million
tons of HPI and 1.4 billion pounds of Vanadium in situ. As vanadium
prices reach historical highs, we are confident that we can
capitalise on the growing demand and move towards monetisation of
our asset."
Supply to potential off-take partner
In September 2018, the Company announced that it commenced
mining and the supply of unrefined ore to a potential off-take
partner ("the Off-taker"), who is a specialist subsidiary of an
international steel group. The Off-taker requested a sample of
10,000 tons for commercial scale testing (the "Commercial Sample").
Initial grades analysis indicated that the Company's ore should be
suitable for processing by the Off-taker. Since the Commercial
Sample was requested, 1,000 tons of ore have been shipped to the
Off-taker, with deliveries taking place daily The Company is being
paid for the Commercial Sample, such that the Company's associated
operating costs should be covered.
Should the Commercial Sample be successfully processed, the
Off-taker has indicated that they may request to undertake a
longer-term test of a significantly larger sample, taken across the
licence holdings of the Company for variability testing. It is
anticipated that this extended testing programme could last for up
to 12 months. Upon the successful conclusion of those tests, the
Company could expect to enter into a long term commercial off-take
agreement with the Off-taker that would set it on the path to
executing its stated strategy of mining its ore and processing on
site.
Placing Summary
The Placing will raise, in aggregate, GBP400,000 before expenses
through the placing of, in aggregate, 24,242,420 new Ordinary
Shares (the "Placing Shares") at a price of 1.65 pence per share.
The Placing Shares to be issued will rank pari passu in all
respects with the Company's existing Ordinary Shares and will
represent approximately 4.1% of the Company's enlarged issued share
capital, following admission of the Placing Shares.
Application will be made for the Placing Shares to be admitted
to trading on the AIM Market of the London Stock Exchange and it is
expected that admission will take place and trading in the Placing
Shares will commence from 8:00am on 3 December 2018
("Admission").
Total Voting Rights
Following Admission, the Company's issued share capital will
consist of 592,133,698 Ordinary Shares, with each Ordinary Share
carrying the right to one vote. The Company does not hold any
Ordinary Shares in treasury. This figure of 592,133,698 Ordinary
Shares may therefore be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules ("DTRs").
Ends
For further information, please contact:
Ironveld plc c/o Camarco
Peter Cox, Chief Executive 020 3757 4980
Shore Capital and Corporate Limited
Stephane Auton / Toby Gibbs (corporate finance)
Jerry Keen (corporate broking) 020 7408 4090
Camarco
Gordon Poole / Kimberley Taylor / Thayson
Pinedo 020 3757 4980
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END
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