Ironveld PLC Offtake Agreement and Final Approvals (7958Y)
May 20 2016 - 1:00AM
UK Regulatory
TIDMIRON
RNS Number : 7958Y
Ironveld PLC
20 May 2016
20 May 2016
IRONVELD PLC
("Ironveld" or the "Company")
Offtake Agreement and Final Approvals
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 the finalisation of an offtake agreement for
its products with Oreport (Pty) Ltd.
Oreport, a South African based, majority black owned, global
trading company will take 100 per cent of the titanium slag
representing 8,269 tons per annum (as projected in the Projects
Definitive Feasibility Study), and has first right of refusal for
the high purity iron powder (HPI) and the vanadium slag. Oreport is
an established marketing and related services company with
expertise in commodities and steel.The agreement is for a period of
five years from first production which is expected to commence in
2017.
Final Approvals
Ironveld has been informed by Hacra Mining and Exploration (Pty)
Ltd that the Section 11 transfer transferring the Mineral Right to
HW Iron (Pty) Ltd) has been approved and should be finalised within
30 days.
The Environmental Impact Assessment (EIA) for Pan Palladium
(Pty) Ltd, a wholly owned subsidiary of Sylvania Platinum Limited
has been granted by the Department of Environmental Affairs and
Tourism. Following this, it is expected that the Mining Right will
be granted shortly. This is the final right that the company
acquired from Sylvania Platinum Limited.
The land lease agreement for the 15 MW smelter is being
processed by the Department of Public Works and represents the last
milestone following which the Company will be in a position to
conclude the financing package and commence construction.
Peter Cox, CEO said:
"We are delighted to sign this important agreement with our new
partners in South Africa and we look forward to working very
closely with them for the long term. We are also very close to
concluding further offtakes for our production of HPI powder and
vanadium, demonstrating further validation of the Project.These
agreements will demonstrates the level of demand for our high grade
products and ensures security of payment over the long term. The
construction contracts for the smelter are also close to being
awarded and we look forward to updating shareholders on various
fronts in the near term."
Giles Clarke, Chairman said:
"The Oreport agreement is a key milestone in project
development. I am very pleased we are partnering with such an
established name at this highly exciting time for the Company.
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 / Billy Clegg 020 3757 4980
Notes to Editors:
Ironveld (IRON.LN) is the owner of a High Purity Iron, Vanadium
and Titanium project located on the Northern Limb of the Bushveld
Complex in Limpopo Province South Africa. Ironveld expects to mine
its own VTM ore as feedstock for a 15MW DC smelter which will
produce speciality iron products including high purity iron powder
as well as vanadium and titanium slag products.
The Definitive Feasibility Study published in April 2014
confirms the project's viability to deliver an exceptionally high
grade iron product (99.5% Fe) called High Purity Iron which
commands a premium in the market place. High Purity Iron Powder is
widely used in powder metallurgy, in magnetic materials and in
manufacturing of welding rods. Vanadium and Titanium slag
containing commercial grades of vanadium and titanium will also be
produced and sold. Vanadium has historically been used as
ferrovanadium or as a steel additive adding a considerable increase
of strength to steel. However it is the development of vanadium
redox flow battery systems for grid energy storage applications
that has the most potential to have a significant impact on future
vanadium demand. Titantium Slag is an upgraded white pigment that
is used in the manufacture of paint, paper and plastics.
Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox
as CEO, Vred von Ketelhodt as CFO, Nick Harrison and Rupert Fraser
as a Non-Executive Directors.
Ironveld is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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