Business
Update on DMS Magnetite Joint Venture
Update on DMS Magnetite Joint Venture.
About this update from Ironveld Plc
[{"type":"text","content":"\n\nIronveld Plc\n(\"Ironveld\" or the \"Company\")\nUpdate on DMS Magnetite Joint Venture\n \nIronveld, the AIM quoted mining development company, is pleased to confirm that its subsidiary, Ironveld Mining (Pty) Limited (\"Ironveld Mining\"), and its Joint Venture (\"JV\") partner, Pace SA Pty Limited (\"Pace\"), have agreed with a subsidiary of JSE-listed Sable Exploration and Mining Limited (\"SEAM\", ticker code SXM) certain amendments to the funding and operational structure of the DMS Magnetite operation currently being established at Ironveld's mining area. The new structure retains Ironveld's ability to supply ore into the JV and benefit from a share of positive cashflows without having to fund the initial capital expenditure.\n \nThe JV between Ironveld and Pace, IPace Pty Limited (\"IPace\"), shall continue to be responsible for erecting, operating, and maintaining the plant alongside all marketing of the final product and Ironveld Mining will continue to supply ore on a 'cost plus' basis to IPace.\n \nThe parties have now agreed that SEAM, via a subsidiary company Sable Platinum Holdings (Pty) Limited (\"SPH\"), will advance all necessary funding of approximately ZAR 15 million (approximately £650,000) for the establishment of an initial quick start 10,000 tonnes per month (\"tpm\") capacity plant. There will also be an option to fund future expansions in capacity, depending on the success of the venture. \n \nOnce SPH's capital loan has been repaid out of 70% profits, it will retain a 50% interest and IPace will own 50% of the venture and remain entitled to 50% of all profits.\n \nSEAM and Pace have both introduced significant offtake customers to IPace, and forecasted tonnage volumes are now approximately double the level envisaged in early 2023 when Ironveld Mining and Pace established the JV. The amendments to percentage interests between the parties will have a negligible effect on the positive cashflows likely to accrue to Ironveld.\n \nThis revised structure maintains the benefits for Ironveld Mining in being able to mine and sell additional ore, including 'fines' that would otherwise not be suitable for the Group's Rustenburg smelter. The reduced upfront capital requirement for a smaller and more efficient plant, which minimises unused capacity versus the original plant ...