Ironveld PLC Ironveld supplies potential off-take partner (9267B)
September 26 2018 - 1:00AM
UK Regulatory
TIDMIRON
RNS Number : 9267B
Ironveld PLC
26 September 2018
26 September 2018
Ironveld plc
("Ironveld" or the "Company")
Ironveld supplies potential off-take partner
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 the Company has commenced mining and the
supply of ore to a potential off-take partner, who is a specialist
subsidiary of an international steel group.
Ironveld's Vanadiferous Titaniferous Magnetite project has a
resource that contains 27 million tons of HPI and 1.4 billion
pounds of Vanadium in situ, the latter representing over four times
the global annual demand.
The Company has been actively engaged over the last year with a
specialist metals subsidiary of an international steel group who is
a potential off-taker for its unrefined ore ("the Off-taker").
Following successful laboratory tests on samples of the Company's
ore, the Off-taker has requested a sample of 10,000 tons for
commercial scale testing (the "Commercial Sample").
The Company, having finalised community access and rental/lease
agreements, has engaged the services of an opencast contract mining
company and has begun to take delivery of the Commercial Sample.
Initial grades analysis indicate that the Company's ore should be
amenable for successful processing in the Off-taker's facility. The
Company is being paid for the Commercial Sample, such that the
programme of sampling is expected to cover all the Group's
associated operating costs.
Should the Commercial Sample be successfully processed, the
Off-taker has indicated that they may request to undertake a
long-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 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. In this
context, the Middelburg Smelting facility remains an acquisition
option for the Company.
Peter Cox, CEO of Ironveld, said:
"We are encouraged by the interest of the potential off-take
partner. The sampling programme will generate revenue for the
Company and we are hopeful that this will lead to a longer term
commercial agreement, such that the Company would move from a phase
of exploration to one of revenue generation.
"Should the long-term test be successful the amount of ore
anticipated to be supplied under the envisaged off-take agreement
would not affect the Company's strategy of developing its own
smelting capacity.
"Since acquiring the Project, Ironveld has obtained the
necessary permits to begin construction and has secured financial
support from the South African Government via the Industrial
Development Corporation. The long-term objective remains to operate
our own smelting capacity to process the large Vanadiferous
Titaniferous Magnetite resource at the Project."
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 4997
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 7.5 MW 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. Vanadium and Titanium slag
containing commercial grades of vanadium and titanium will also be
produced and sold.
Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox
as CEO, Vred von Ketelhodt as CFO, Nick Harrison, Rupert Fraser and
Duncan George Harvey as a Non-Executive Directors.
Ironveld is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com.
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END
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