REG - Ironveld PLC - Working Capital Facility

IronveldAnnouncement

24/04/2024 07:00

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RNS Number : 7699L  Ironveld PLC  24 April 2024

This announcement contains inside information

Ironveld Plc

("Ironveld" or the "Company")

Working Capital Facility

Ironveld plc ("Ironveld" or the "Company"), the AIM-traded mining development
company, is pleased to confirm that it has today entered into a further
working capital loan facility agreement ("Facility Agreement") with Tracarta
Limited ("Tracarta"), in which John Wardle, Executive Chairman of the Company,
has a beneficial interest. The Facility Agreement enables the Company to draw
down up to £125,000 on equivalent terms to the existing loan facilities with
Tracarta (see announcement released on 2 February 2024) and has a term of six
months.

The funds drawn down under the Facility Agreement 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. As indicated in the Company's interim results
announcement (released on 28 March 2024), the Board is assessing the Company's
current funding requirements which will likely require the Company to raise
additional capital, potentially through the issue of new equity.

The Facility Agreement has the following key terms:

 Facility Amount:           £125,000
 Term:                      6 months
 Interest:                  11% per annum
 Fee:                       2.5%
 Repayment and Conversion:  Repayment of any funds drawn down plus interest immediately upon receipt of
                            funds drawn down from any replacement institutional debt facility or
                            conversion at the issue price in the event of any future equity placing during
                            the loan term
 Warrants:                  None

 

Related Party Transaction

John Wardle has a beneficial interest in Tracarta and, as such, the provision
of the facility 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 and Malebo Ratlhagane) consider,
having consulted with the Company's nominated adviser, Cavendish, that the
terms of the Facility Agreement 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

 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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