Ironveld plc (LON:IRON), the mining development company focused on producing high-value strategic metals, has announced that it has raised £900,000 before expenses through a placing with investors of 2,000,000,000 ordinary shares of 0.01p each at a price of 0.045 pence per share, as further detailed below. The Placing was arranged through the Company’s joint broker, Turner Pope Investments (TPI) Ltd.
Ironveld CEO, Kris Andersson, commented:
“Market demand for our DMS-grade magnetite both from within the South Africa market and from nearby export countries is exceeding our current processing capacity. We are therefore looking to ramp up processing capacity through the acquisition of an additional larger mill and associated equipment. In addition, demand is also emerging for unprocessed Run of Mine ore, requiring investment in preparation for meeting demand. The placing attracted very strong interest and was significantly oversubscribed, reflecting the continued confidence and support of our shareholders. We are sincerely grateful for this backing and thank them for their ongoing commitment to the Company.”
Placing Details
The Placing comprises a placing of 2,000,000,000 new Ordinary Shares at a price of 0.045 pence per share conditional only on admission to trading on AIM, which represents a discount of 4.25% to the closing bid-price on 10 June 2025 (being the last practicable date prior to this announcement).
The New Ordinary Shares represent approximately 12.6% of the Company’s issued ordinary share capital as enlarged by the Placing and the Fee Shares (defined below) and together with the Broker Warrants (as described below) would represent approximately 13.2% of the diluted issued share capital (as enlarged by the Placing, Fee Shares and Broker Warrants).
The New Ordinary Shares are being issued under the Company’s existing share issue authorities.
TPI is acting as broker and placing agent to the Company. Under the terms of its engagement, conditional upon Admission, JIM Nominees Limited, as nominee for TPI, will be issued with 88,888,889 Ordinary Shares at the Placing Price in settlement of its broking fees (the “Fee Shares”) and will also be issued with 200,000,000 broker warrants, entitling the holder to subscribe for one new Ordinary share at the Placing Price at any time within five years from the date of Admission (the “Broker Warrants”).
Use of Proceeds
The funds raised from the Placing will provide the Company with working capital and funds necessary to finance:
· a second, larger ball mill and associated equipment to increase throughput capacity
· procurement and commissioning of a drying plant to meet bulk client moisture specifications
· infrastructure to support bulk delivery logistics, complementing current bagged product operations
evaluation of additional power generation, including back up power generation as well as potentially a partial solar-based energy solution, to ensure reliable and sustainable energy back up supply.
Ironveld Technical Director, Peter Cox, commented:
“By directing investment into key infrastructure upgrades and mining operations, we are positioning ourselves to meet both the volume and quality requirements of larger offtakers. The development of our DMS processing plant and associated mining activities is progressing in line with our expectations, and we remain focused on increasing both production capacity and operational efficiency in the near term.”
Admission to Trading
Application will be made for the 2,088,888,889 New Ordinary Shares, which will rank pari passu in all respects with the existing Ordinary Shares of the Company, to be admitted to AIM, which is expected to occur at 8am on or around 17 June 2025.
Total Voting Rights
Upon Admission, the total number of issued Ordinary Shares and the total number of voting rights in the Company will be 15,830,978,237. The Company does not hold any Ordinary Shares in Treasury.
Therefore, the above figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
