(Alliance News) - Ironveld PLC on Thursday said it has begun work at its FCF Smelter site in Rustenburg, South Africa, following its recent GBP4.5 million fundraise.
Back in July, the South Africa-focused exploration and development company secured GBP4.5 million via a placing and broker option. At the time, it said that the proceeds would be used to complete the acquisition of FCF and the refurbishment of its existing smelter located in Rustenburg, South Africa.
The FCF deal will provide Ironveld with up to 7.5 megawatts of smelting capacity within six to nine months, enabling processing of approximately 40,000 tonnes of magnetite ore on an annualised basis, it added.
On Thursday, Ironveld said its contractors have begun to work on the site, initially focusing on site clean-up and security, as well as water, electrical and gas supply servicing and safety checks. In addition, mechanical, electrical and structural compliance checks and statutory certification will be completed, the company added.
Following this, the planned refurbishment and upgrades across the facility will take place, this is expected to take six to nine months. This will allow the first of the three furnaces to commence production. The company said has been permitted access to the smelter facility early, in order to progress the refurbishment.
The final contracts for completion of the acquisition are "progressing well", Ironveld added.
Shares in Ironveld were down 1.6% to 0.30 pence each in London on Thursday midday.
By Sophie Rose; sophierose@alliancenews.com
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Ironveld (IRON)