Last checked at 3 Aug 2015 07:00
3rd August 2015
Ironveld plc ("Ironveld" or the "Company")
Operational Update
Ironveld plc, the High Purity Iron ("HPI"), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa is pleased to provide an operational update to its shareholders.
Project update
Offtake discussions are ongoing with draft term sheets being discussed and interest levels remain high. The HPI price remains high and is resilient to the cyclicality of the market.
Due diligence is proceeding steadily with both the debt funders who could provide a significant portion of the project's funding and potential Broad-Based Black Economic Empowerment ("BBBEE") partner funders who have indicated that they may provide funding to the project in addition to the BBBEE funding.
On the ground, significant progress is being made with draft construction contracts for the smelter being circulated. Requests for quotes for mining operations will be issued before month end. In addition we are implementing our critical infrastructure program with the design of the electrical infrastructure completed ahead of schedule and below budget while the necessary applications for the lease of land and water being in hand such that it is anticipated that these will be delivered in line with the project schedule.
Mining rights update
Ironveld has been informed by Sylvania Platinum that the Section 11 applications to transfer the Iron mining rights from HACRA and Pan Palladium to Ironveld's HW Iron and Lapon subsidiaries have been submitted to the Department of Mineral Resources ("DMR"). The environmental rehabilitation provision for the execution of the HACRA Iron mining right has been agreed and Ironveld has made the necessary arrangements for the guarantee to be issued to the DMR and it is expected that the right will be executed in August.
A new presentation will be made available on the Company's website which can be viewed at www.ironveld.com.
Peter Cox, CEO of Ironveld said:
"We have made solid progress over the last few months on all fronts both on the ground and in terms of the funding required to commence construction of the 15MW smelter which is expected to commence production of High Purity Iron and Vanadium and Titanium slag by-products in 2016. This is positive news for the project development and our shareholders, as is the recent exchange rate movement between the ZAR and the US$ which if maintained will have a positive cash flow impact."
Ends
For further information, please contact:
Ironveld plc Peter Cox, Chief Executive | c/o Camarco 020 3757 4980 |
Shore Capital Stephane Auton / Toby Gibbs (corporate finance) Jerry Keen (corporate broking) | 020 7408 4090 |
Camarco Billy Clegg/ Georgia Mann | 020 3757 4980 |
Notes to Editors:
Ironveld (IRON.LN) is 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 smelter which will produce speciality iron products including high purity iron powder as well as vanadium and titanium products. In June 2015, the smelter received EIA approval from the Limpopo Department of Economic Development, Environment and Tourism.
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. Vanadium and Titanium slag containing commercial grades of vanadium and titanium will also be produced and sold.
Ironveld's Board includes; Giles Clarke, Chairman, Peter Cox, CEO, Vred von Ketelhodt, CFO and Nick Harrison and Rupert Fraser as Non-executive Directors.
Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.