High-purity iron and titanium slag producer Ironveld is proposing to raise £2-million on the Aim, to be used for accelerating the final works necessary to reach full production at its recently commissioned Rustenburg smelter complex, in South Africa.
The fundraising will comprise a placing of 666-million new ordinary shares at a price of 30p each, of which 280-million shares will be issued out of authorities granted to the directors of Ironveld at the last annual general meeting.
The remaining placing shares will be issued subject to the requisite authorities being granted to the directors at a general meeting to be held in due course.
Ironveld explains that, since starting production in January, at what had been a mothballed operation, all of the company’s working capital is being tied up in the plant, particularly as the company works to commission two more furnaces by April.
Full production capacity at all the smelters is expected to be reached by mid-2023.
Meanwhile, Ironveld awaits commissioning of an independent solar hybrid power plant in the third quarter, which also contributes to why the board deems it prudent to guard against further inflationary pressures by conducting the fundraising.