26th Sep 2018 11:12
LONDON (Alliance News) - Ironveld PLC said Wednesday it has commenced supply of sample ore from its South African project to a potential off-take partner which could lead to a commercial agreement.
Shares were trading 9.8% higher at 1.81 pence each on the back of the news.
"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," Ironveld Chief Executive Peter Cox said.
"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," Cox added.
The company, which operates a high-purity iron, vanadium and titanium project on the Northern Limb of the Bushveld complex in Limpopo Province of South Africa, has begun supplying a sample of 10,000 tons for commercial scale testing a undisclosed company, which is a unit of an international steel group.
The sampling programme is expected to cover all of Ironveld's associated operating costs. Should the sampling be successfully, the off-take partner has indicated to conduct a long-term testing of the ore, which could last up to 12 months.
Ironveld said it expects to enter into a long-term off-take agreement with the undisclosed off-taker upon successful completion of the testing programme.
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