Last checked at 20 May 2016 07:00
20 May 2016
IRONVELD PLC
("Ironveld" or the "Company")
Offtake Agreement and Final Approvals
Ironveld plc, the owner of a High Purity Iron ("HPI"), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa (the "Project") is pleased to announce the finalisation of an offtake agreement for its products with Oreport (Pty) Ltd.
Oreport, a South African based, majority black owned, global trading company will take 100 per cent of the titanium slag representing 8,269 tons per annum (as projected in the Projects Definitive Feasibility Study), and has first right of refusal for the high purity iron powder (HPI) and the vanadium slag. Oreport is an established marketing and related services company with expertise in commodities and steel.The agreement is for a period of five years from first production which is expected to commence in 2017.
Final Approvals
Ironveld has been informed by Hacra Mining and Exploration (Pty) Ltd that the Section 11 transfer transferring the Mineral Right to HW Iron (Pty) Ltd) has been approved and should be finalised within 30 days.
The Environmental Impact Assessment (EIA) for Pan Palladium (Pty) Ltd, a wholly owned subsidiary of Sylvania Platinum Limited has been granted by the Department of Environmental Affairs and Tourism. Following this, it is expected that the Mining Right will be granted shortly. This is the final right that the company acquired from Sylvania Platinum Limited.
The land lease agreement for the 15 MW smelter is being processed by the Department of Public Works and represents the last milestone following which the Company will be in a position to conclude the financing package and commence construction.
Peter Cox, CEO said:
"We are delighted to sign this important agreement with our new partners in South Africa and we look forward to working very closely with them for the long term. We are also very close to concluding further offtakes for our production of HPI powder and vanadium, demonstrating further validation of the Project.These agreements will demonstrates the level of demand for our high grade products and ensures security of payment over the long term. The construction contracts for the smelter are also close to being awarded and we look forward to updating shareholders on various fronts in the near term."
Giles Clarke, Chairman said:
"The Oreport agreement is a key milestone in project development. I am very pleased we are partnering with such an established name at this highly exciting time for the Company.
For further information, please contact:
Ironveld plc Peter Cox, Chief Executive | c/o Camarco 020 3757 4980 |
Shore Capital and Corporate Limited Stephane Auton / Toby Gibbs (corporate finance) Jerry Keen (corporate broking) | 020 7408 4090 |
Camarco Gordon Poole / Billy Clegg | 020 3757 4980 |
Notes to Editors:
Ironveld (IRON.LN) is the owner of a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa. Ironveld expects to mine its own VTM ore as feedstock for a 15MW DC smelter which will produce speciality iron products including high purity iron powder as well as vanadium and titanium slag products.
The Definitive Feasibility Study published in April 2014 confirms the project's viability to deliver an exceptionally high grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. High Purity Iron Powder is widely used in powder metallurgy, in magnetic materials and in manufacturing of welding rods. Vanadium and Titanium slag containing commercial grades of vanadium and titanium will also be produced and sold. Vanadium has historically been used as ferrovanadium or as a steel additive adding a considerable increase of strength to steel. However it is the development of vanadium redox flow battery systems for grid energy storage applications that has the most potential to have a significant impact on future vanadium demand. Titantium Slag is an upgraded white pigment that is used in the manufacture of paint, paper and plastics.
Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox as CEO, Vred von Ketelhodt as CFO, Nick Harrison and Rupert Fraser as a Non-Executive Directors.
Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.