RE: Progress31 Jan 2023 09:52
(Alliance News) - Ironveld PLC on Friday announced a joint venture agreement with Pace SA Pty Ltd to produce and sell dense media separation grade magnetite from its mine in Limpopo, South Africa.
Ironveld, through its subsidiary Ironveld Mining Pty Ltd, enters the joint venture as equal partners with Pace. The joint venture will be called IPace Pty Ltd.
All profits from the joint venture will be split on a 50:50 basis, save for an initial period where Pace will recoup its capital funding on a 60:40 profit share basis.
Pace has agreed to fund all capital equipment and establishment costs to produce the DMS grade magnetite at Ironveld's Lapon mining area. The current costs are estimated at around ZAR35 million, or GBP1.7 million.
Ironveld Mining will sell magnetite ore to the joint venture at cost for processing into DMS grade magnetite and be responsible for operating the beneficiation plant, whilst Pace will be responsible for trading the DMS grade magnetite to end customers.