18th Dec 2015 11:49
LONDON (Alliance News) - Ironveld PLC on Friday said the mining right for magnetite on the Harriets Wish, Cracouw and Aurora farms in South Africa has been executed and the associated environmental management program has been approved by the Department of Mineral Resources.
The exploration and development company, which is pursuing a high purity iron, vanadium and titanium project on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa, was informed of the news by Hacra Mining and Exploration (Pty) Ltd, a 71% subsidiary of Sylvania Platinum Ltd.
In addition, Ironveld said it has executed the prospecting right on the farm Non Plus Ultra.
The execution of the mining right and EMPR means the only outstanding agreement required is the land-lease agreement for the 15 megawatt smelter, which is expected in January, following which the company will be in a position to conclude the financing package and commence construction.
"The execution of the Hacra mining right and the approval of the associated EMPR is a significant step forward in the development of our project," Chief Executive Peter Cox said.
"Coupled with the land lease, which we expect to conclude in January, and with the confirmation of power availability from ESKOM, we look forward to an exciting year as we deliver the 15MW smelter project," Cox added.
ESKOM generates approximately 95% of the electricity used in South Africa.
Meanwhile, the weakening of the South African rand has been positive for the economics of the project, Cox said.
Shares in Ironveld were up 4.1% at 5.08 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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