DMS Grade Magnetite Joint Venture Agreement

Ironveld Plc

("Ironveld" or the "Company")

DMS Grade Magnetite Joint Venture Agreement

Ironveld is pleased to confirm that its subsidiary, Ironveld Mining (Pty) Limited ("Ironveld Mining"), has entered into a Joint Venture Agreement ("JVA") with Pace SA (Pty) Limited ("Pace"), as equal partners to produce and sell Dense Media Separation ("DMS") grade magnetite from Ironveld's mine in Limpopo, South Africa.

Highlights

· Ironveld to participate in a 50:50 joint venture ("JV") to process and sell DMS grade magnetite, to be sourced from existing mining operations;

· All initial capital and establishment costs of approximately ZAR 35 million (£1.65 million) to be funded by Ironveld's JV partner, Pace SA (Pty) Limited;

· Maximum design capacity of beneficiation plant approximately 60 tonnes per hour; and

· First production and sales from the JV expected mid 2023.

Martin Eales, CEO of Ironveld, said: "This is an exciting and value additive transaction for Ironveld, which will utilise our existing mining infrastructure to supply extra quantities of ore, at multiples of the expected smelter requirements per month, to the JV from which we expect profitable cashflow within months. We would like to thank Pace for funding the initial capital contribution at a time when we are focusing our resources on the Rustenburg smelter ramp up, and we look forward to working with them."

Ms Thabisa Hanise, CEO of Pace, said: "This opportunity is a highly attractive legacy project in South Africa and forms an important part of the development of Pace's vision. I look forward to a long and successful relationship with Ironveld."

Details of the Joint Venture Agreement

The JVA states that Ironveld Mining and Pace will establish a newly incorporated company to be called IPace Pty Limited ("IPace") owned in equal 50% shares. Pace will fund all necessary capital equipment and establishment costs of a beneficiation plant to produce the DMS grade magnetite, currently estimated at approximately ZAR 35 million (approximately £1.65 million), which will be sited on Ironveld's Lapon mining area.

Ironveld Mining will sell magnetite ore to the JV at cost for processing into DMS grade magnetite and be responsible for operating the beneficiation plant, whilst Pace will be responsible for trading the DMS grade magnetite to end customers.

Ironveld and Pace have agreed to share all profits arising from the JV (after mining costs, production costs and management fees) on a 50:50 basis, save for an initial period whereby Pace will recoup its capital funding on a 60:40 profit share basis.

Further Information on Pace

Pace SA was established in 2009 and is a South African company specialising in Mining and Industrial supply chain solutions in the Southern African region. Pace currently trades DMS grade magnetite as a part of its business.

Planned Operations

The beneficiation plant will have a maximum capacity of approximately 27,000 tonnes per month of DMS grade magnetite, based on a design throughput of 60 tonnes per hour. The plant equipment includes screens, crushers, mill and a low intensity magnetic separator ("LIMS").

Feedstock for the beneficiation plant will be delivered directly from Ironveld Mining's operations which are also providing material for the Rustenburg smelter. Crucially, approximately 30% of the normal run of mine material is classed as "fines" which are unsuitable for the smelter but can be processed into DMS grade magnetite, thereby enabling Ironveld to earn a revenue stream from what was previously a waste product.

The demand for magnetite ore by the JV will have a material positive impact in reducing Ironveld's average mining costs per tonne, and the JV will refund Ironveld's mining costs and management fees prior to profit share.

All operations will take place under Ironveld Mining's existing permits and no further regulatory approvals are required.

Pace anticipates selling the DMS grade magnetite to a number of customers in the market. 

Timetable

Ironveld and Pace expect that site preparation, plant procurement and construction will take approximately four to five months, with first sales of DMS grade magnetite in mid 2023.

For further information, please contact:

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.

Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.