TPI provides its latest research note on Ironveld plc (IRON.L)

Further to detailing in Interims published on 30 March 2021 that it was at an advanced stage of negotiations with a strategic investor to assist the Group with its next stage of development, Ironveld has today announced a proposed major new investment by Grosvenor Resources Pty Limited (‘Grosvenor’).

Conditional only on shareholder approval, Grosvenor will subscribe £5.6 million for 5,615 million new shares in Ironveld at 1.0p per share (the ‘Fundraising’), representing 29.9% of the enlarged issued share capital at a premium of 90.5% to the mid-market price on 29 March 2021, being the last trading day prior to the disclosure that was in discussions that might lead to a material transaction.

Having already seen the subscription proceeds deposited in an escrow account, it has been agreed that Grosvenor will nominate two Non-Executive Directors to the Group’s Board following completion of the Fundraising. A circular together with a notice to convene a General Meeting is expected to be published in the coming days. In its announcement, Ironveld’s Board notes that this investment represents an important opportunity for it to bring on board a credible partner to help drive its strategy.

It also notes that the net proceeds from the subscription will provide a substantial proportion of the overall project funding required, as well as ensuring that all corporate overheads and costs associated with the new Mining Right application are covered for the foreseeable future.

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We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Ironveld plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2021 Turner Pope Investments (TPI) Limited, all rights reserved.

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