Ironveld PLC- exploration and development company - Unveils proposed new major investment by Grosvenor Resources Pty Ltd worth GBP5.6 million. Grosvenor will invest in company via subscription for 561.5 million new shares at price of 1.0p each.
"Grosvenor is a new South African private company formed by young black entrepreneurs who wish to expand their investments and mining operations in South Africa beyond the bulk commodities space and develop high-value vertically integrated projects," it says.
Says the investment is an exciting opportunity to bring on board a "credible and serious partner". Investment will will provide a "substantial proportion" of company's overall funding for subsidiary, Luge Prospecting & Mining Ltd, for the foreseeable future.
Ironveld Chief Executive Martin Eales adds: "We are delighted to be able to announce this transaction today, which has taken a great deal of hard work by the teams on both sides over many months. Ironveld is issuing new equity at a large premium with a supportive new partner. Grosvenor is taking a substantial stake in Ironveld and is focused on ensuring near-term development of Ironveld's project for the benefit of all shareholders."
Current stock price: 0.95 pence, up 56% on Friday
Year-to-date change: up 79%
By Paul McGowan; paulmcgowan@alliancenews.com
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