Ironveld PLC Company Update (8217L)
July 24 2017 - 2:00AM
UK Regulatory
TIDMIRON
RNS Number : 8217L
Ironveld PLC
24 July 2017
24 July 2017
Ironveld plc ("Ironveld" or the "Company")
Company Update
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium
and Titanium project located on the Northern Limb of the Bushveld
Complex in Limpopo Province, South Africa (the "Project"), is
pleased to announce material progress with regards to the
acquisition of a smelting business ("Middelburg Smelting"),
commencement of operations, funding and mining progress.
Highlights:
-- The Company is confident of closing the funding arrangements
necessary for the potential acquisition of the Middelburg Smelting
facility. Once this is complete, the Company will undertake the
refurbishment necessary to process its magnetite ore to produce
HPI, Vanadium and titanium slag.
-- In the interim period, Ironveld, through its wholly owned
subsidiary ("Ironveld Middelburg"), has taken management and
operational control of the Middelburg Smelting business.
-- Ironveld Middelburg has sourced material that could be melted
in the induction furnaces at the Middelburg Smelting facility and
is expecting to be cash flow positive in August.
-- The Sylvania loan facility has been repaid.
-- The Section 11 application to transfer the Pan Palladium
mining right to Lapon, a 74% owned subsidiary of Ironveld Mining,
has been submitted by Pan Palladium and is being processed by the
Department of Mineral Resources.
Middelburg Smelting business
The Company has put down R8.8m (c.GBP530k) as a refundable
deposit towards the potential acquisition of the Middelburg
Smelting facility (the "Potential Acquisition") in exchange for a
period of exclusivity to conclude the Potential Acquisition and in
the interim, to take over the management and operation of the
facility.
The Company has identified the potential of using the induction
furnaces to melt various materials for sale and has already located
various copper, cobalt and iron materials that are suitable for
induction smelting and is negotiating commercial arrangements which
will allow for profitable processing of these materials. Operations
are expected to commence in August 2017, with profits being
generated on the first sale of material.
The Company is close to finalising the terms of the Potential
Acquisition and the Board expects to announce shortly the funding
arrangements for the purchase of the facility and the investment in
the necessary upgrades and refurbishment to allow for the
processing of the Company's own magnetite ore through the 7.5 MW
smelter.
Sylvania Loan Facility
The Company is also pleased to announce that it has repaid the
R15 million loan facility with Sylvania Metals Pty Limited (the
"Loan Facility").
Peter Cox, CEO of Ironveld, said:
"We continue to make significant progress in moving towards
production. The team has successfully identified the revenue
generating potential of the induction furnaces and I look forward
to the commencement of operations next month.
"I anticipate that we will shortly be announcing the closing of
the funding arrangements, which would enable us to proceed with the
acquisition of the Middelburg Smelting facility. Immediately
following the acquisition, refurbishment work will commence
enabling us to begin the smelting of our own magnetite ore and
produce our high value HPI, Titanium and Vanadium slag products
early next year."
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
/ James Crothers 020 3757 4980
This information is provided by RNS
The company news service from the London Stock Exchange
END
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