Ironveld Receives Non-binding Funding From A South African Based Financial Institution
Ironveld Receives Non-binding Funding From A South African Based Financial Institution. Ironveld plc, is pleased to provide an update on the direct institutional funding transaction which the company has been progressing. The company is in receipt of a non-binding term sheet from a South African based financial institution, regarding the asset level financing of mining and smelting activities at the company’s High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, and Rustenburg, South Africa.
The funding would enable Ironveld to invest in all Group operations, including the transition to production of high purity iron powders. The transaction is subject to further due diligence, and there is no certainty that a transaction will be concluded. The Term Sheet is confidential and no further information can be provided at this time. Alongside Ironveld’s discussions on the Term Sheet, the Board is assessing the company’s funding requirements until a transaction can be completed.
The company also announced that Chief Executive Officer, Martin Eales, has stepped down from the Board with immediate effect. Dr. John Wardle, Executive Chairman, will take over Mr. Eales’ duties on an interim basis. Dr John Wardle, Executive Chairman of Ironveld, said: “We are delighted to report that the Company has received a Term Sheet from a South African based financial institution in order to support the financing of mining and smelting activities at the Project. It is a wide-ranging proposal which aims to provide full financing to all planned activities through to sustained production of high value products including Powdered High Purity Iron. This is an exciting development for the Company, and we look forward to updating shareholders on the details of the Term Sheet at the appropriate time. In the interim I will assume Mr. Eales’ duties as we begin the process to appoint a new CEO to lead the Company in what we expect to be a challenging and exciting new phase of growth.”
Ironveld is the owner of Mining Rights over approximately 28 kilometres of outcropping Bushveld magnetite with a SAMREC compliant ore resource of some 56 million tons of ore grading 1.12% V2O5, 68.6% Fe2O3 and 14.7% TiO2. In 2022, Ironveld agreed to acquire and refurbish a smelter facility in Rustenburg, South Africa, in which it can process its magnetite ore into the marketable products of high purity iron, titanium slag and vanadium slag.
