This announcement contains inside
information
Ironveld
Plc
("Ironveld" or the "Company")
Working
Capital Facility
Ironveld plc ("Ironveld" or the "Company"), the
AIM-traded mining development company, is pleased to confirm that
it has today entered into a further working
capital loan facility agreement ("Facility Agreement") with
Tracarta Limited ("Tracarta"), in which John Wardle, Executive
Chairman of the Company, has a beneficial interest. The Facility
Agreement enables the Company to draw down up to £125,000 on
equivalent terms to the existing loan facilities with Tracarta (see
announcement released on 2 February 2024) and has a term of six
months.
The funds drawn down under the
Facility Agreement will be used to strengthen the Company's working
capital position. As previously notified, the Company remains in
discussions regarding a direct institutional funding transaction,
which is currently expected to close in H1 2024 and, if concluded,
will enable Ironveld to invest in all Group operations, including
transition to production of high purity iron powders. As indicated
in the Company's interim results announcement (released on 28 March
2024), the Board is assessing the Company's current funding
requirements which will likely require the Company to raise
additional capital, potentially through the issue of new
equity.
The Facility Agreement has the
following key terms:
|
Facility Amount:
|
£125,000
|
|
Term:
|
6 months
|
|
Interest:
|
11% per
annum
|
|
Fee:
|
2.5%
|
|
Repayment and Conversion:
|
Repayment of any funds drawn down plus interest
immediately upon receipt of funds drawn down from any replacement
institutional debt facility or conversion at the issue price in the
event of any future equity placing during the loan term
|
|
Warrants:
|
None
|
Related Party Transaction
John Wardle has a beneficial
interest in Tracarta and, as such, the provision of the facility by
Tracarta constitutes a related party transaction pursuant to Rule
13 of the AIM Rules for Companies. The Company's independent
Directors (being Giles Clarke, Nick Harrison, Peter Cox and Malebo
Ratlhagane) consider, having consulted with the Company's nominated
adviser, Cavendish, that the terms of the Facility Agreement are
fair and reasonable insofar as the Company's shareholders are
concerned.
For
further information, please contact:
|
Ironveld plc
Dr John Wardle, Executive
Chairman
|
|
c/o BlytheRay
+44 20 7138 3204
|
|
Cavendish Capital Markets Ltd (Nomad and Joint
Broker)
Derrick Lee / Adam Rae
|
|
+44 20 7220 0500
|
|
Turner Pope (Joint Broker)
Andrew Thacker/James Pope
|
|
+44 20 3657 0050
|
|
BlytheRay
Tim Blythe / Megan Ray
|
|
+44 20 7138 3204
|
NOTES TO
EDITORS
Ironveld (IRON.LN) 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. This transaction
became unconditional in March 2023.
Ironveld is an AIM traded company. For further
information on Ironveld please refer to www.ironveld.com.