RE: RNS27 Jan 2023 08:49
Read the RNS and its a no brainer.
Details of the Joint Venture Agreement - No funding required from our Part.
The JVA states that Ironveld Mining and Pace will establish a newly incorporated company to be called IPace Pty Limited ("IPace") owned in equal 50% shares. Pace will fund all necessary capital equipment and establishment costs of a beneficiation plant to produce the DMS grade magnetite, currently estimated at approximately ZAR 35 million (approximately £1.65 million), which will be sited on Ironveld's Lapon mining area.
Ironveld Mining will sell magnetite ore to the JV 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.
Ironveld and Pace have agreed to share all profits arising from the JV (after mining costs, production costs and management fees) on a 50:50 basis, save for an initial period whereby Pace will recoup its capital funding on a 60:40 profit share basis.
Also More News Coming
Next steps
In the coming weeks operations from the first furnace will be tested and optimised and also be extended to include production of vanadium ****, which requires a further processing step. First production sales are still in line to be achieved by Q2 2023 as planned.
The second and third furnaces at the smelter continue to be refurbished and are both anticipated to be in production by April 2023. Once the three furnaces are fully operational, the complex will be capable of processing approximately 40,000 tonnes of Ironveld's magnetite ore per annum which, in turn, will provide the following approximate quantities of finished products per annum: 20,000 tonnes of high purity iron; 190 tonnes of vanadium in ****; and 3,800 tonnes of titanium in ****.
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