REG - Ironveld PLC - Ironveld PLC Sign Binding Term Sheet

IronveldAnnouncement

30/10/2025 17:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251030:nRSd5718Fa&default-theme=true

RNS Number : 5718F  Ironveld PLC  30 October 2025

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR"), which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

30 October 2025

Ironveld PLC

("Ironveld" or the "Company")

Ironveld and Daemaneng Minerals Sign Binding Term Sheet to Accelerate Major
Production Expansion at Joint Venture DMS Plant

Output expected to reach 15,000 tonnes per month by April 2026, while
eliminating all capital and operating exposure for Ironveld and Joint Venture
Partners.

Ironveld PLC (AIM: IRON) is pleased to announce that its subsidiary, Altona
Processing (Pty) Ltd ("Altona"), has entered into a binding term
sheet with Daemaneng Minerals (Pty) Ltd ("Daemaneng"), appointing Daemaneng
as the exclusive manager of operations at Ironveld's joint-venture DMS-grade
magnetite processing facility in Limpopo, South Africa (the "Plant").

This agreement has been entered into under the joint-venture framework with
Sable Platinum Holdings (Pty) Ltd ("Sable"), marking a further step in the
shared strategy to deliver a self-funded, high-throughput beneficiation
operation.

The binding term sheet follows the recently signed Mining Operations
Agreement between Ironveld's subsidiary Lapon Mining (Pty) Ltd ("Lapon
Mining") and Daemaneng (see press release dated 7 October 2025
(https://otp.tools.investis.com/clients/uk/ironveld_plc/rns/regulatory-story.aspx?cid=2890&newsid=1994360)
), together representing a major strategic milestone in establishing a fully
integrated, performance-driven, and capital-light production model across
Ironveld's mining and processing operations.

 

Key Highlights

Altona Processing

Altona Processing (Pty) Ltd, a wholly owned subsidiary of Ironveld Holdings
(Pty) Ltd will continue in its capacity as the operator of the Plant, while
Daemaneng has been appointed as the sub-contracted manager, overseeing
operations, logistics, and sales activities.

Exclusive Plant Management and Funding

Daemaneng will assume full responsibility for all Plant operations,
optimisation, and expansion, funding all associated capital and operational
expenditure at its own cost and risk.

Production Ramp-Up to 15,000 Tonnes per Month

The Plant will be optimised to reach a sustained production rate of
approximately 6,000 tonnes per month within three months, expanding to 15,000
tonnes per month by April 2026, subject to market demand.

Performance-Linked Commercial Model

Daemaneng will act as the exclusive marketing and sales agent for all
DMS-grade magnetite produced. Revenues will be distributed according to a
transparent profit-sharing waterfall between Altona, Sable and Daemaneng, with
a guaranteed base revenue per tonne for Altona and Sable in equal parts.

No Capex or Opex for Ironveld, Sable or the Joint-Venture

All operating and capital costs are borne entirely by Daemaneng, allowing both
Ironveld and Sable to benefit directly from production upside while fully
de-risking the joint-venture and their respective balance sheets.

Alignment of Interests and Operational Transparency

The arrangement operates on an open-book basis, ensuring full visibility of
Plant performance and financial results, with Daemaneng's upside entirely
linked to efficiency, optimisation, and market performance.

·      Key Obligations of Daemaneng include:

o  Fund all capital and operational expenditures (Capex and Opex).

o  Optimise and expand Plant production to a minimum of 15,000 tonnes per
month.

o  Act as the exclusive marketing and sales agent for all DMS-grade magnetite
produced.

o  Assume full responsibility for ore supply, quality, and logistics.

·      Commercial Model: The revenue distribution for each tonne of
DMS-grade magnetite sold is as follows:

o  The base revenue per tonne is allocated for the benefit of Altona and
Sable in a 50:50 ratio.

o  Daemaneng receives a commission of 6% of the Actual Sales Price.

o  Any remaining Additional Profit (Actual Sales Price minus Base Revenue and
Commission) is shared equally in three parts between Altona, Sable, and
Daemaneng.

This arrangement is designed to ensure the Plant's rapid expansion and
operational efficiency while securing a stable and attractive revenue stream
for the joint venture.

Prepayment Commitment:

Daemaneng will provide an initial prepayment of ZAR 1.6 million, split equally
between Altona and Sable, further demonstrating commitment to near-term
cash-flow support.

Mobilisation and Operational Start Up

Daemaneng is set to deploy its fleet and operational equipment to the DMS
Plant and mine site by the end of next week. On-site teams will commence
mobilisation and early commissioning immediately thereafter, leading to the
full handover of management of operations by mid-November 2025.

 

Kris Andersson, Chief Executive Officer of Ironveld PLC, commented:

"This binding term sheet marks another significant milestone in Ironveld's
ongoing transformation into a lean, agile, and revenue-generating business. It
represents the next major step in establishing a fully integrated and
self-sustaining operating model across our mining and processing activities.
By once again partnering with Daemaneng Minerals, now also at the DMS Plant
level, we are achieving true vertical integration from mine to magnetite
concentrate, creating a capital-light structure that fully de-risks Ironveld's
financial exposure while maintaining direct participation in future
operational upside.

"This partnership is built on alignment and accountability. It brings together
complementary expertise and shared ambition to unlock the full operational
potential of our assets and deliver tangible production growth to 15,000
tonnes per month.

"The dedication and sustained effort of our team over recent months has
delivered the tangible progress we have all been working toward. At the end of
the day, success is always a team effort, and this achievement reflects the
collective hard work, determination, and commitment of everyone involved.

"I want to congratulate the entire team on the significant progress made in
developing and advancing the DMS Plant, which has directly enabled the
conclusion of this highly attractive technical and commercial agreement

"We look forward to updating the market more frequently as the results of
these agreements begin to bear fruit and the real potential of our operations
unfolds."

 

Glenn Norton, Chief Executive Officer of Daemaneng Minerals (Pty) Ltd, added:

"We are very pleased to strengthen our partnership with Ironveld through this
binding term sheet, which formalises Daemaneng's role as the exclusive manager
of operations at the JV DMS Plant. Our immediate focus will be on
optimisation, operational excellence, and achieving a rapid production ramp-up
leading to sustained growth.

"Daemaneng is fully committed to funding, managing, and optimising the Plant's
operations to realise its full commercial potential and ensure production
reaches and maintains 15,000 tonnes per month on a consistent basis.

"I would like to extend my sincere appreciation to Kris Andersson, CEO of
Ironveld PLC, and Ulrich Bester, CEO of Sable Platinum Holdings, for their
trust and confidence in Daemaneng.

"We have already established a strong and collaborative working relationship
with Ironveld, which we view as long-term and founded on trust, mutual
respect, and shared values. We also see significant potential for future
collaboration and additional commercial opportunities with Ironveld across
diversified areas, as our organisations continue to align operationally and
strategically."

Outlook

The execution of this binding term sheet builds directly on the Mining
Operations Agreement signed earlier in October 2025, collectively forming a
unified framework across Ironveld's upstream and downstream operations.

With mining, logistics, marketing and processing now under Daemaneng's
operational leadership, the Company anticipates an accelerated ramp-up of
production and cash-flow generation across the value chain.

Daemaneng's optimisation programme includes enhancements to crushing
efficiency, water recovery systems, and throughput reliability.

Full-scale production of 15,000 tonnes per month is targeted for March / April
2026 according to Daemaneng's projections.

 

Timeline and Implementation

Daemaneng has confirmed that it will mobilise its fleet and operational
equipment to the DMS Plant and to the mine site by the end of next week, with
personnel deployment and initial commissioning activities commencing
immediately thereafter. The parties expect the handover of on-site management
and operational control to be completed by mid-November 2025.

 

Production ramp-up targets, as agreed under the Binding Term Sheet, are as
follows:

 Month               Target Production (Tonnes)  Status

 December 2025       4,000                       Ramp-up
 January 2026        6,000                       Ramp-up
 February 2026       7,500                       Ramp-up
 March 2026          10 - 15,000                 Full Production
 April 2026 onwards  15,000                      Sustained Production

Further announcements will be made as key milestones are achieved, and
production volumes progressively increase through Q4 2025 and into 2026.

 

For further information, please contact:

 Ironveld plc                                          c/o BlytheRay

 Kristoffer Andersson, Chief Executive Officer         +44 20 7138 3204

 Cavendish Capital Markets Limited (Nomad and Broker)  +44 20 7220 0500

 Derrick Lee

 Turner Pope Investments (TPI) Ltd (Joint Broker)      +44 20 3657 0050

 Andrew Thacker / James Pope

 BlytheRay                                             +44 20 7138 3204

 Tim Blythe / Megan Ray

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAKEEDSFSFFA



            Copyright 2019 Regulatory News Service, all rights reserved