Ironveld
Plc
("Ironveld" or the "Company")
Working
Capital Facility
Ironveld plc ("Ironveld" or the "Company"), the
AIM quoted mining development company, is pleased to confirm that
it has entered into working capital loan
facility agreements (the "Facility Agreements") with Tracarta
Limited (in which John Wardle, Executive Chairman of the Company,
has a beneficial interest). The Facility Agreements enable the
Company to draw down up to £375,000, and consist of a £250,000
facility, through a 12-month extension of the existing agreement
with Tracarta (as notified by Ironveld on 18 September 2023), and a
new £125,000 facility on equivalent terms to the existing facility
with Tracarta, with a term of six months.
The funding available through the
Facility Agreements 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.
The Facility Agreements have the
following key terms:
|
Facility Amount:
|
£250,000
(extension)
|
£125,000
(new)
|
|
Term:
|
12 months
|
6 months
|
|
Interest:
|
11% per
annum
|
11% per
annum
|
|
Fee:
|
No fee for
extension
|
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
|
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
|
None
|
Related Party Transaction
John Wardle has a beneficial
interest in Tracarta and, as such, the provision of the facilities
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, Martin
Eales and Malebo Ratlhagane) consider, having consulted with the
Company's nominated adviser, Cavendish, that the terms of the
Facility Agreements are fair and reasonable insofar as the
Company's shareholders are concerned.
For
further information, please contact:
|
Ironveld plc
Dr John Wardle, Executive
Chairman
Martin Eales, Chief Executive
Officer
|
|
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.