Working Capital Facility

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 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	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	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 Dr John Wardle, Executive Chairman Martin Eales, Chief Executive Officer		c/o BlytheRay [phone]
Cavendish Capital Markets Ltd (Nomad and Joint Broker) Derrick Lee / Adam Rae		[phone]
Turner Pope (Joint Broker) Andrew Thacker/James Pope		[phone]
BlytheRay Tim Blythe / Megan Ray		[phone]

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.

 

END