LONDON (Alliance News) - Ironveld PLC said Tuesday it has raised GBP1.1 million through the placing of 62.9 million shares at 1.75 pence each.
Shares in the exploration and development company were down 14% in mid-morning trading at 1.90p each.
Ironveld said the net proceeds of the placing will put the company on a "stronger footing" and will allow it to cover its overheads as it continues discussions with two development partners for its iron, vanadium and titanium project on the Northern Limb of the Bushveld complex in the Limpopo province of South Africa.
The company said its potential project development partners are engaged in an "extensive" due diligence process, with off-take agreements potentially to be completed after the bulk sampling programme.
"I am delighted with the continued support the company has received from our shareholders. The proceeds from this fundraise will significantly strengthen our balance sheet and place us in a position of strength as we continue discussions to enable the Company to commence production of high purity iron, vanadium and titanium," said Chief Executive Peter Cox.
Ironveld said the proceeds from the placing means it has sufficient working capital to see it through to October.
The placing represents about 9.6% of Ironveld's issued share capital, with the new shares expected to be admitted to AIM on February 28. Following admission of the new shares, Ironveld will have 655.0 million shares in issue.
Ironveld (IRON)