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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