(Alliance News) - South Africa-focused iron miner Ironveld PLC on Thursday announced it raised GBP1.0 million in a share placing, and this will go towards repaying debt facilities and providing financial stability as it continues negotiations over its magnetite project.
Ironveld issued 333.3 million shares at a price of 0.30 pence each, a 54% discount to the company's closing price on Wednesday at 0.65p.
Shares in Ironveld were 43% lower at 0.37 pence on Thursday in Johannesburg.
In addition, some Ironveld directors have agreed to capitalise GBP780,000 in deferred salaries and fees in return for 260.3 million shares. Also Ironveld will settle all liabilities rising from loan facilities announced in February, totalling GBP235,000, through the issue of 78.3 million shares.
Finally, the bridge funding advanced by Inclusive Investment Group, totalling GBP650,000, will be settled by the issue of 102.2 million shares at 0.42 pence each, and the outstanding sum settled by a cash repayment of GBP112,000.
Ironveld expects the fundraise to provide it with enough cash resources to fund operations into the first half of 2022.
The placing and issue of all other shares are conditional on approval of resolutions implementing the share sub-division at a general meeting on December 14. The sub-division will see the division of one existing Ironveld share into one new share and nine deferred shares.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Ironveld (IRON)