Business
Placing to raise £1.765 million
Placing to raise £1.765 million.
About this update from Ironveld Plc
[{"type":"text","content":"\n \nRNS Number : 5253X Ironveld PLC 27 November 2017 \n\n27 November 2017 \nIronveld plc (\"Ironveld\" or the \"Company\")\n \nPlacing to raise £1.765 million\n \nIronveld 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 that it has raised £1.765 million before expenses through a placing of 88,250,000 new ordinary shares of 1p each at a price of 2p each.\n \nHighlights:\n \n· Placing to raise gross proceeds of £1.765 million through the issue of 88,250,000 Placing Shares at a price of 2p each.\n \n· Proceeds of the Placing will be used for working capital and will put the Company on a strong footing as it seeks to realise its stated objective of becoming a producer of High Purity Iron, Vanadium and Titanium.\n \n· The Company remains in advanced discussions with a number of funding providers for the potential acquisition of the Middelburg smelting facility.\n \nPeter Cox, CEO of Ironveld, said:\n \n\"I am delighted with the continued support the Company has received from our shareholders. The proceeds from this fundraise will significantly strengthen our balance sheet and place us in a position of strength as we continue discussions to enable the Company to commence production of High Purity Iron, Vanadium and Titanium.\"\n \n \nPotential acquisition of Middelburg smelting facility\n \nIn July of this year, the Company put down a R8.8m refundable deposit (the \"Deposit\") towards the potential acquisition of the Middelburg smelting facility (the \"Potential Acquisition\") in exchange for a period of exclusivity to conclude the Potential Acquisition. The Deposit remains in place as the Directors continue to negotiate funding arrangements. Whilst such discussions and the associated due diligence have taken longer than originally envisaged, the Directors remain confident of successfully concluding such arrangements to secure the funding for the necessary upgrades and refurbishment to allow for the processing of the Company's own magnetite ore through the 7.5 MW smelter.\n \nThe Ironveld Project\n \nThe Group is the owner of a High P...