(Sharecast News) - Ironveld updated the market on the IIG option agreement on Wednesday, having entered into arrangements with IIG to raise potential gross proceeds of $3.2m (£2.6m) on 30 March.
The AIM-traded firm explained that itself and IIG entered into an option agreement under which, on the grant of the option, IIG could subscribe for 440,176,070 new ordinary shares at a price of 0.42p each, with the option due to expire on 17 June.
On Wednesday, Ironveld said the two parties had been "working closely" in recent weeks to investigate and make application for project development funding, which would facilitate the start of mining and production for Ironveld's magnetite project in South Africa.
"The fundraising transaction and larger project financing application have been impacted by the effect of lockdown restrictions in South Africa due to Covid-19, which has caused interruption at all levels of commerce," the board said in its statement.
"Due to both of these factors, Ironveld and IIG are in negotiations to extend the period during which the option can be exercised.
"If such an extension is agreed it is anticipated that IIG will provide bridge funding to Ironveld so that it is capable of meeting its obligations prior to the anticipated exercise of the option."
At 0829 BST, shares in Ironveld were down 4% at 0.96p.
Ironveld (IRON)2 May 2024 17:21
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