Aim-listed mining development company Ironveld has entered into a further working capital loan facility agreement with shareholder Tracarta, in which Ironveld chairperson John Wardle has a beneficial interest.
The facility agreement enables the company to draw down up to £125 000 on equivalent terms to the existing loan facilities with Tracarta and has a term of six months.
The funds drawn down under the facility agreement will be used to strengthen the company's working capital position.
As previously reported, the company remains in discussions regarding a direct institutional funding transaction, which is currently expected to close in the first half of this year and, if concluded, will enable Ironveld to invest in all group operations, including the transition to the production of high-purity iron powders.
As indicated in the company's interim results announcement, the board is assessing the company's current funding requirements, which will likely require the company to raise additional capital, potentially through the issue of new equity.
Ironveld’s mining division mines vanadiferous and titaniferous magnetite in South Africa for sale to industrial users, as well as its own smelting division, which, in turn, processes the magnetite ore into high-purity iron, vanadium slag and titanium slag.