Ironveld PLC Company Update (3779T)
October 12 2017 - 1:00AM
UK Regulatory
TIDMIRON
RNS Number : 3779T
Ironveld PLC
12 October 2017
12 October 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"), provides
the following update with regards to the acquisition of a smelting
business ("Middelburg Smelting").
In July of this year, the Company put down a R8.8m (c.GBP530k)
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. The Company remains in exclusive discussions to
acquire the Middelburg Smelting facility and is in the process of
agreeing revised terms for the potential acquisition.
The Company continues to negotiate to secure the funding for the
necessary upgrades and refurbishment to allow for the processing of
the Company's own magnetite ore through the 7.5 MW smelter facility
and remains confident of successfully concluding such funding
arrangements. Advanced discussions are ongoing with a number of
parties, two of whom have completed their due diligence and are in
the process of concluding their respective internal approval
processes.
The Board had previously taken operational control of the
facility and management has now spent considerable time on site in
preparation for commencing operations as soon as possible. However,
the board has now concluded that in order to ensure future
efficient operation of the facility it is in the Company's best
interests to hold off commencing these operations until the
necessary upgrades have been made to the facility and funding is in
place to conclude the acquisition. The Company will provide a
further update in due course.
Peter Cox, CEO of Ironveld, said:
"The acquisition of Middleburg Smelting remains a core focus of
the Company and on completion would transition Ironveld into a
production led mining company.
On the mining rights the water use licence application has been
submitted and access agreements have been proposed to the
communities and affected land owners. These negotiations are well
in hand and we expect them to be concluded prior to the planned
smelter refurbishment being completed.
The Board looks forward to updating its shareholders on the
acquisition as financing discussions advance."
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
/ Monique Perks 020 3757 4980
This information is provided by RNS
The company news service from the London Stock Exchange
END
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