18th Jun 2015 09:37
LONDON (Alliance News) - Ironveld PLC on Thursday said it has raised GBP1.5 million after conducting a placing to fund the plans for the development of the 15 megawatt DC smelter at the high purity iron, vanadium and titanium project in Limpopo province, South Africa.
The company placed under 23.1 million shares at 6.5 pence per share to raise the funds to progress the project so it can develop the smelter, which is expected to commence producing iron, vanadium and titanium slag by-products in 2016.
In particular, the funds will be used to progress due diligence with banks to try to secure debt funding for the project, to finalise environmental approvals, and for additional working capital.
Ironveld said it has received the indicative term sheet for a "significant proportion" of the debt funding required and is currently finalising contracts with technology providers and local contractors for the construction of the smelter. The company has also secured "formal offers" and other expressions of interest for offtake agreements for its high-purity iron and by products.
Ironveld shares were down 5.3% to 6.75 pence per share on mid-morning Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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