Ironveld share price skyrockets 93% following IIG partnership announcement
Exploration and development company Ironveld’s share price on the LSE skyrocketed by over 93% following its announcement on March 30 that it would be entering a new strategic partnership with Inclusive Investment Group (IIG) to raise about £2.7-million.
The partnership marks a significant milestone that would allow Ironveld to begin Phase 1 of bringing its high-purity iron, vanadium and titanium project, located on the northern limb of the Bushveld Complex in South Africa, into development, CEO Martin Eales said in a statement.
The partnership also includes the purchase of the production-ready Middelburg Smelter Facility, placing the company on a fast track to further unlock potential.
The fundraising agreement consists of about £1.8-million in equity and an £840 000 loan. The latter is to be made by IIG to Ironveld and will be drawn down in one tranche following the completion of the subscription.
Following the completion of the subscription, IIG will become Ironveld’s largest shareholder with a 36% stake.
IIG intends to use its expertise and connections within Africa to secure larger-scale funding needed for Ironveld to develop its project.
The rationale behind the fundraising and use of proceeds is to cover essential running and overhead costs, which the proceeds should provide for until cashflows can be successfully derived from the first phase of the development project.
IIG’s investment in Ironveld represents “an exciting opportunity” for Ironveld to “bring on board a credible and serious partner” to help drive its strategy.
Ironveld will look to use IIG's expertise to secure the broader financing required to bring the company's project into development.
IIG is an investment vehicle associated with former South African Deputy Finance Minister Mcebisi Jonas and Monwabisi Twantwa and is considered to be “at the forefront” of securing development for South Africa's coming wave of battery and strategic metals projects.
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