Aim-listed Ironveld has signed a share purchase agreement (SPA) to acquire 100% of the share capital of Ferrochrome Furnaces (FCF), which will provide the company with an existing smelting facility and the opportunity to start mining and processing in the short term.
Ironveld, through its subsidiary company Ironveld Smelting, has entered into an agreement with the shareholders and the business rescue practitioner of FCF to acquire the entire share capital of FCF for a nominal fee of R980.
Ironveld intends to change the name of FCF to Bokone Smelting in due course to reflect the regional heritage of its operations, given that 'Bokone' translates as 'North' in the Tswana and Sepedi languages, the company outlines.
The only condition precedent in the SPA is the signing of a debt purchase agreement between Ironveld Smelting and the sole creditor of FCF for R115-million, and this condition precedent is expected to be completed in the next two to four weeks.
OPERATIONAL UPDATE
On August 11, Ironveld announced that, following successful completion of the recent placing to raise gross proceeds of £4.5-million, its team of specialist contractors had started work at the FCF smelter site, in Rustenburg, South Africa.
The company says the industrial cleaning work has been successfully completed and the initial works programme continues as planned.