Kuits advises mining outfit Ironveld plc on £1.8m AIM placing31 Oct 2016
Manchester commercial law firm Kuits has advised Ironveld plc, an AIM-traded mining company, on a share capital raising that will enable the company to further invest in its project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa.
Ironveld has raised gross proceeds of c.£1.8 million through the issue of 40,000,003 Placing Shares at a price of 4.5p each, which will be used to advance the development of a 15MW DC smelter for the production of high-purity iron, and vanadium and titanium slag products.
The company says project funding and development is progressing strongly, with the Industrial Development Corporation (IDC) recently approving facilities representing c.R244.08 million.
Peter Cox, CEO of Ironveld plc, commented: “Ironveld has had a busy period of activity, including the execution of the vitally important transaction with the IDC, which is a major stamp of approval from the South African government of our project. I am delighted with the continued support from our shareholders and the proceeds from this fundraise will enable us to commence the development phase of the project whilst we seek to conclude the remaining debt agreements.”
Kirsti Pinnell, corporate partner for Kuits, led the team advising Ironveld plc on its placing.
She commented: “This is the latest in a number of strategic AIM placings we have worked on with clients in recent months. While the official figures suggest that, generally, companies are showing a greater reluctance to list on AIM due to fears surrounding the impact of Brexit, our AIM clients are continuing to raise funds successfully.”
Kuits has a strong reputation for capital market work, recently advising The Bagir Group and Kennedy Ventures on AIM placings, and FASTNET Oil and Gas on an AIM reversal with placing.