REG - Ironveld PLC - Working Capital Facility

IronveldAnnouncement

02/02/2024 14:00

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RNS Number : 9107B  Ironveld PLC  02 February 2024

Ironveld Plc

("Ironveld" or the "Company")

Working Capital Facility

Ironveld plc ("Ironveld" or the "Company"), the AIM quoted mining development
company, is pleased to confirm that it has entered into working capital loan
facility agreements (the "Facility Agreements") with Tracarta Limited (in
which John Wardle, Executive Chairman of the Company, has a beneficial
interest). The Facility Agreements enable the Company to draw down up to
£375,000, and consist of a £250,000 facility, through a 12-month extension
of the existing agreement with Tracarta (as notified by Ironveld on 18
September 2023), and a new £125,000 facility on equivalent terms to the
existing facility with Tracarta, with a term of six months.

The funding available through the Facility Agreements will be used to
strengthen the Company's working capital position. As previously notified, the
Company remains in discussions regarding a direct institutional funding
transaction, which is currently expected to close in H1 2024 and, if
concluded, will enable Ironveld to invest in all Group operations, including
transition to production of high purity iron powders.

The Facility Agreements have the following key terms:

 Facility Amount:           £250,000 (extension)                                                             £125,000 (new)
 Term:                      12 months                                                                        6 months
 Interest:                  11% per annum                                                                    11% per annum
 Fee:                       No fee for extension                                                             2.5%
 Repayment and Conversion:  Repayment of any funds drawn down plus interest immediately upon receipt of      Repayment of any funds drawn down plus interest immediately upon receipt of
                            funds drawn down from any replacement institutional debt facility or             funds drawn down from any replacement institutional debt facility or
                            conversion at the issue price in the event of any future equity placing during   conversion at the issue price in the event of any future equity placing during
                            the loan term                                                                    the loan term
 Warrants:                  None                                                                             None

 

Related Party Transaction

John Wardle has a beneficial interest in Tracarta and, as such, the provision
of the facilities by Tracarta constitutes a related party transaction pursuant
to Rule 13 of the AIM Rules for Companies. The Company's independent Directors
(being Giles Clarke, Nick Harrison, Peter Cox, Martin Eales and Malebo
Ratlhagane) consider, having consulted with the Company's nominated adviser,
Cavendish, that the terms of the Facility Agreements are fair and reasonable
insofar as the Company's shareholders are concerned.

 

For further information, please contact:

 Ironveld plc                                                c/o BlytheRay

 Dr John Wardle, Executive Chairman                          +44 20 7138 3204

 Martin Eales, Chief Executive Officer

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

 Derrick Lee / Adam Rae

 Turner Pope (Joint Broker)                                  +44 20 3657 0050

 Andrew Thacker/James Pope

 BlytheRay                                                   +44 20 7138 3204

 Tim Blythe / Megan Ray

 

 

NOTES TO EDITORS

Ironveld (IRON.LN) is the owner of Mining Rights over approximately 28
kilometres of outcropping Bushveld magnetite with a SAMREC compliant ore
resource of some 56 million tons of ore grading 1.12% V2O5, 68.6% Fe2O3 and
14.7% TiO2.

In 2022, Ironveld agreed to acquire and refurbish a smelter facility in
Rustenburg, South Africa, in which it can process its magnetite ore into the
marketable products of high purity iron, titanium slag and vanadium slag. This
transaction became unconditional in March 2023.

Ironveld is an AIM traded company. For further information on Ironveld please
refer to www.ironveld.com (http://www.ironveld.com) .

 

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